Inspiring Business by Sharing Success
Added by Love Business East Midlands | 27 December 2012
UPDATED: 27 August 2013
You’ve seen the perfect property at auction.
It’s a bargain and the auctions tomorrow.
How do you get the green light on the finance in time?
A property auction avoids all of the lengthy purchasing procedures, at auction it's condensed into a matter of minutes rather than months. When the hammer falls, if you’ve won the bidding, you own the property. But there’s a condition…
Then you get 28 days to transfer the balance of finances or you’ll lose your deposit. This means you only really have about 20 working days. Which means you need to get your auction finance in place for before bidding for the property or you’ll risk losing your deposit.
Buying property at auction can be stressful and many people avoid doing so because of the concerns about organising the finance. Which is precisely why a property auction can be the right place to bag a bargain. BUT, you need to get your auction finance arrangements in place first.
Working with a property auction specialists, you can carry out early stage legal work and get a ‘desk top’ valuation. This will give you more confidence when bidding on any of your desired lots. These packages are specifically designed for purchasing properties through auction. But do your research, there are plenty of unreputable lenders. Get it wrong and you could end up losing the property or paying over the odds.
The majority of auction-goers are those in the trade and in the know, such as property dealers and developers. Because they use specialists to arrange their auction finance bridging loan facilities, they often have an arrangement which means they can call mid auction to adjust the deal. Giving them ability to bid confident in the knowledge that they have secured the funding required despite any last minute changes.
This article is by Gary Poulton, a Director or Redrock Commercial Finance. If you want to understand how to raise business finance quickly visit www.business-bridging-loan.co.uk