Cash Buyer Only?
I often get opportunities offered like this:
I've got an Incredible BMV in West London - for a CASH BUYER ONLY. I've just got the valuation done via Home track and, guess what? Its worth £716,000!
The asking price is 495,000 for a quick sale and I could get it down to 450k, as it's a very motivated seller who needs to sell asap. Do let me know immediately if interested.
This is from a property investor who - clearly - doesn't actually have enough money in the bank to buy the property himself.
However, he is ignoring one very important fact ... this property can be bought using bridging finance, possibly with a very small cash input, subject to a bit of due diligence:
On what do you base your value of £716,000?
Is it on the market with an agent and that is the asking price? Or is it just that Hometrack says that is what it is worth; would that be supported by a RICS survey report?
Assuming its value to be £716,000, a bridging lender that lends against value, rather than purchase price, would most likely lend 65% ish of value = £465,000 less costs
On that basis any buyer would not need £450k in cash but probably less than £30k.
I have set up bridging loans for deals like this before and if it is genuinely 35% BMV, it can be done with very little cash.
You can learn more here:
- Contact Kevin Wright over on his Facebook page.
- Browse the Recycle Your Cash online training library by clicking here.
- Attend an upcoming 1-Day Property Finance Masterclass event - Book in here.
