13/04/2025
As I reflect upon the past week, the biggest win has to be the revaluation coming back on the refinance of this 1 bedroom flat in Aberdeen...
This is easily the best deal that myself and Calum Newlands have done so far, showing us a glimpse of what can be achieved through creative financing.
No Money Down
As we had made another strategic cash purchase in the portfolio, we were able to raise a bridging loan against both the existing cash purchase in the portfolio which was going through a refurbishment and this 1 bedroom flat for 100% of the related costs for the deal. The monthly bridging costs had been deducted upfront from the loan advanced, meaning that we had no monthly outgoings from our bank account which helped with cashflow management.
Revaluation
When refinancing onto a buy to let mortgage product, the revaluation amount of £75,000 that we have received will be enough to clear the original bridging loan which that we raised for the deal.
Little Refurb Required
As there was little refurb works required, we were able to hand our keys over to our trusted letting agent to organise the small touch ups needed before renting the property out. This meant that little headspace was required on our part once we had figured out the financing element.
The net result?
Whilst carrying out a refurb on another property, we were able to strategically add this deal to the portfolio without any cashflow impact on our business. On a monthly basis we will profit a further £230 per month as a result and will have strengthened our equity position in the portfolio by a further £18,750.
Now these deals don't come about very often and I can't thank the great teams that we have in the background enough, without whom these deals simply wouldn't happen.
In this case a big thanks has to be made to:
Stephanie Mann and Amy Hay at Laurie and Co Solicitors for conveyancing work on the property purchase
at Go Financial Services (mortgage broker) for helping to facilitate such a creative financing strategy
and the team at Winchesters Lettings for organising the small refurb works required before letting and then finding the right tenant
