We back. So far so…consistent?

How to use investor funds, and not have to face any underwriter questions

This one may seem overly simple but trust me…
When it comes to short term finance (bridging, development, refurb) lenders generally are ok with you using funds from investor funds but need the following

• ID for the investor

• Source of funds (Anti money laundering) checks carried out

• loan agreement

• signed deed of subordination - which adds to your legal costs

So the question is, how do you avoid all of this?
Well, lets say you’re raising £25,000 from an investor.
But, you do have £25,000 in your account already anyway.
Then, for the purpose of getting the deal over the line use your money. You just need to get your proof and source of funds checked. But thats easy, its your money.
Once the deal is funded, get the investor money to replenish your funds (still doing AML checks via your solicitor).
Sounds easy? It is. But you obviously need to have the cash in hand to make this work!

Thank me later.

Lending updates

• Buying below market value at auction on a bridge, or cash, then refinancing straight away onto a mortgage at full market value - Foundation Home Loans will do it

• First time buyer, first time landlord social housing mortgages? - Quantum have you covered

• 2 houses (not flats) on one title - again its one for Foundation Home Loans

CIAO FOR NOW