Are you thinking of starting your very own buy-to-let empire? Perhaps you want to invest in a few commercial properties to grow your business and expand nationwide. Whatever the reason behind your exciting property project, the first step is to make sure you can receive the amount of funding you require to get started.
To give the construction company or the estate agent the go ahead, you’ll need to find a funding source. Traditional mortgages, even buy-to-let mortgages or commercial mortgages are proving hard to get and unless you meet a strict set of criteria, it’s unlikely the bank will help you finance your project. But that doesn’t mean you should give up on your dreams – there are many other ways to get your property venture off the ground.
Investing in property can be difficult when you’re just starting out. Once you have a portfolio and can prove you can make a profit it’s actually easier to secure funding – but until then here are the options.
If you have a lot of cash ready for investing somewhere, for example if you’ve received a large inheritance, then this is the best option. Buying a property upfront is very rare, but if you’re lucky enough to have a large lump sum then you’ll reap the rewards with this kind of transaction. If you have a large figure but it doesn’t reach the asking price, putting as much as you can down as a deposit will obviously reduce the future repayments.
A buy to let mortgage and a commercial mortgage works differently to a residential mortgage. It’s important to know the risks before applying and worth checking if you’re eligible to secure this kind of mortgage. It’s a good idea to contact a loan broker who can search around for the best deals for property investment.
Alternative Finance Solutions
The average person probably won’t be able to use the first two options to fund their first buy to let property and start a portfolio. Luckily, there is another solution – alternative finance providers. These providers use investors and other means to provide loans and tailored finance solutions when an off-the-shelf bank mortgage doesn’t suit. Even individuals with no supporting accounts or an adverse credit history could be eligible for a non-status commercial loan and development funding.
It can be difficult to find the right property funding for you, so why not chat to our property financing experts today.