To put it simply this product is readily available, most of the finer details depends on the individual or entity having their affairs in order. Auction finance loans are designed for speed of use, so you can complete a transaction in the quickest possible timeframe. But like any tool it is as only good as the person who uses it.

Before taking out this option make sure you have a conducted through investigation of the property, it may be worth one, getting a second opinion from a building contractor to establish the estimated  market value of what the property will be worth on the open market once it is in mint condition so you do not make any excessive bids that eat into your profit margin. Two, get a rough guide of the cost of build works required to make good the property.

As the saying goes location, location, location. This is a key element to any good property deal so try and liaise with local estate agents in the area to find out about the average rental rates, how quickly properties are being let and how quickly they get sold.

You will need to compile the basic information most lenders require to gain any loan approval. But to qualify for a DIP (Decision in Principle) an individual or Company will need the following:

Contact Info

Credit Report

Anti-Money Laundering Docs i.e. Personal Identification

Company Info

Director Details

Property Details and any supporting information

Your background and property experience

Funding requirement

Proof of funds (deposit) and any additional security available to secure funding if required.

Attractive interest rates

Options with minimal exit fees

Terms from 3 to 18 months

100% funding if additional security is provided

Drawdown milestone payment facility

There are very few as everything by design is done to ensure transactions are wrapped up quickly. However, most lenders will expect you the applicant to cover your own solicitor fees and if you source a solicitor who is not proficient and experienced in competing these types of deals, things can soon turn very sour quickly. The end result could see you losing the deal and your deposit so having good legal representation is paramount and sometimes it is worth paying that extra in legal fees to give you that reassurance.

Lumi Bridging Solutions has a panel of Solicitors who specialise in bridging & commercial finance, so please do not hesitate to discuss this with us. We ask for nothing from our Solicitors but excellent service for our clients.