Bridging Finance In Edinburgh case study.

We recently helped a client Finance a “BRRR” Deal.

(Buy, Refurbish, Refinance, Rent)

The client managed to get an offer accepted on a property for 125,000. 

The client had done similar types of projects in the past and as a result, they were able to borrow 85% LTV (Gross) against the 125,000 from day 1. 

The Property was needing some remedial damp works and complete redecoration throughout. 

Here are the numbers: 

Net advance: 99,979 (12 month bridge, 6 month retained interest) 

Deposit: 25,203

Refurb: 40,000

Finance Costs: 6,596 (over the 6 months the client had the bridge) 

After the refurbishment, the property was valued at 250,000 

The client then refinanced to a new term lender at 75% LTV after 6 months. 

New Loan: 187,500

The client has managed to pull out all of their initial Investment plus around 10,000 tax-free profit. 

I share this example as this is a great case that demonstrates how powerful bridging finance can be if you find the right deal and make sure that you structure the deal properly.