Replace Value Choice into the Bridge Loan Agreement and eSign it in minutes

Aug 6th, 2022
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How to Replace Value Choice into the Bridge Loan Agreement

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hey whats up my name is Samuel Leeds Im a property investor and in this video Im going to be explaining what is a bridging loan and how to finance properties via bridging finance so stay tuned and please do hit that like button and subscribe if you havent already [Music] guys I really appreciate all your comments questions feedback interaction on this channel one of the things has been coming up quite a lot is people been asking whats a bridging loan listen if you dont know what a bridging loan is thats no problem all Im explaining this video but its not going to magically mean that you can buy loads of houses for free okay the thing that you need to do the number one thing is always being able to find good deals if you bring me the right deals Ill believe me we can find that answer for it you can buy a house without using any of your own money as long as you can find the right deals you can however bridging bridging finance is just a tool in a toolbox that is going to help y

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The cons of a bridge loan typically involve a high interest rate, transaction costs and the uncertainty in the sale of the asset where the money it tied up. Bridge loans are meant to be temporary devices to free up money that is tied up pending the sale of the real estate asset.
Speed of funding - Bridging loans can be approved and funded much more quickly than traditional mortgages, making them a good option for property buyers who need to move quickly.
Interest rates on bridging loans range from 0.4% to 1.5%. Note that these are monthly rates, not annual. A bridging loan charging 1% interest per month will cost 12% over a year.
Bridging loans usually have a maximum LTV (loan-to-value) of 75%. LTV 100% bridging loans are therefore uncommon as they are a greater risk to lenders. However, some lenders offer 100% bridging loans under specific circumstances.
Most bridging loans will require the property used as security to be valued. The amount that you can borrow will be a percentage of the propertys worth. This is known as the loan-to-value rate or LTV. Typical loan to value rates are 65% to 70%.
The cons of a bridge loan typically involve a high interest rate, transaction costs and the uncertainty in the sale of the asset where the money it tied up. Bridge loans are meant to be temporary devices to free up money that is tied up pending the sale of the real estate asset.
Mortgages are usually more appropriate for longer term needs than bridging loans. Mortgages tend to come with lower interest rates, however there are often early repayment charges to consider.
A bridge loan is a short-term loan used until a person or company secures permanent financing or pays an existing obligation.

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