Have you ever used bridging loans for your property developments?

Discussion in 'Development' started by diyhelp, Aug 28, 2019.

  1. diyhelp

    diyhelp Active Member

    There is a general misconception that property development bridging loans are expensive when in reality their expensive needs to be considered against the potential uplift in the value of your property. Have you ever used bridging loans for your property developments? Did it work out for you?
  2. Longterminvestor

    Longterminvestor Administrator

    I have not personally used bridging finance but I can see the attractions. Try to look beyond the cost and look at the potential uplift to see if it is worth while.
  3. lookinginvest

    lookinginvest Member

    I totally agree - the cost of bridging finance should be measured against the uplift/benefits it brings. If I made an extra £100k and it only cost me £50k in bridging loan expenses I would be a very happy man :)
  4. Longterminvestor

    Longterminvestor Administrator

    You have hit the nail on the head - it is all relative to the end return. If you spent £5k on a bridging loan which only added £5k to the value of you property, thats a waste of time. Spending £50k to make £100k makes sense.
  5. lookinginvest

    lookinginvest Member

    If the risk reward ratio is slanted in your favour then you will find somebody to lend you the money. If it’s too risky you won’t, simple as.

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