When going for a property investment or asset purchase, a lot of time and attention is allocated to tasks before and during the transaction. What many fail to remember is to provide adequate effort for post acquisitions too. They are equally as crucial and will need tending to as well otherwise the investment won’t be as fruitful as expected or hoped for. This is why today, we have come up with the following list of things to do after an asset acquisition.
·Double check on the documents. We’re expecting that you’ve made your fair share of validating with the legal documents related to the purchase but it doesn’t hurt to look again; now would it?
·Keep payments on schedule. This is especially true if the acquisition was funded with the help of a certain type of credit financing, both short and long term. Never slack off on your obligations unless you’d want to suffer the consequences, rising interests and foreclosures being two. Load them up on your calendar to avoid missing them.
·Update the space. Surely, you’d want to make the property suit its intended purpose whatever that may be. It’s far easier to fix, repair and improve whatever has to be worked on prior to the move and before all your stuff are hauled into the space.
·Change up the security system. Even if the previous owners swear with all their hearts and even if they are trustworthy enough, it is always best to change up all the locks, codes and other similar security measures within the property. This is to ensure that no one else gets access into the asset unbeknownst to its new owners. You never know who may have gotten hold of the security combination or a spare key prior to your purchase. It’s better to be safe than sorry.
·Acquaint yourself with the area. Even if you’ve already scouted the property prior to the purchase, it’s still worth knowing what it holds. A neighborhood or city has its own secrets and charms that you won’t get to know in one or five sweeps. Find out the best ways to get to town or a particular area. Check out the roads and street details. Find out which establishments are within easy reach and which aren’t.
With the rise of many businesses from small scale to medium enterprise to humongous conglomerates, the need for better financing has also taken a hike. One of the few most popular and effective options that came out was that of bridging loans. Unfortunately for many, the sound of them is still a little new if not totally alien so today we’ll talk about them and the benefits they bring.
Bridging loans by definition is an interim financing arrangement that provides a short term loan. It is designed to provide for temporary or short term funds until a permanent source or form can be obtained or made available. They are popularly used whenever sources such as bank loans, mortgages, sale proceeds or income do not arrive on time but a need has to be fulfilled. Upon the arrival of one’s permanent funding, the bridge shall then be closed with it.
The use of such mode of finance comes with a number of benefits to boot such as but is not limited to the following.
1. It is strictly short term. – We all know that the longer the loan is the more chances for borrowers to be burdened by it. Its short term nature allows for lesser fees to worry about and lesser months to pay off.
2. It is easy to acquire. – What makes it a great form of interim finance is the fact that they are easier and faster to process than others of its kind as well as the more traditional forms of credit. The funds can be made available in mere days or weeks even for some providers.
3. It saves you a lot of time. – You no longer need to wait for your loan’s approval and release before you get to acquire that new office building. You can use the bridge to pay up the upfront costs such as the down payment, move in and go on with operations. In business, we all know that time is of the essence so the faster things are done then the better.
4. It cuts risks as well. – Companies no longer have to worry about failing to come up with funds to seal the deal on a prime asset. It need not anymore suffer from opportunity losses.
5. It allows for liberty of payment. – Bridging loans allow borrowers to choose when to pay and close it. You can do it before maturity and as early as you are capable of or at maturity date, upon availability of your permanent financing means. Learn more about here www.alternativebridging.co.uk.
When you take out a form of credit, one of your most crucial tasks is to research and understand your options to better choose and make the most out of your choice. Two of the most popular forms of credit would have to be the traditional bank loans and bridging loans. It is however important to keep in mind that these two are different. As a matter of fact, they belong to either ends of a pole. So how exactly do they differ? Are they even alike? Find out by reading on below.
As per definition…
Traditional Bank Loan – This pertains to the most common type of credit for both businesses and individuals. It is the amount of money lent at an interest by a bank to a borrower for a certain period of time, oftentimes under a collateral security however unsecured agreements may also be available depending on the borrower’s creditworthiness.
Bridging Loans – It is a form of borrowing where a certain sum is lent and issued to a borrower to be used to cover an interval between two transactions. It is uses until either permanent financing is secured or an existing obligation is taken out.
As per period of time…
Traditional Bank Loans – This type of credit is for the long run and its use is often aimed for long term purposes rather than otherwise. This is why the payment for such type of credit or third party financing will also spread out for much longer, usually a couple of years, depending on the terms agreed upon by both borrower and lender.
Bridging Loans – Because bridge loans are designed as an interim financing and a stop gap measure, it is directed to fulfill and provide for short term needs in contrast to the above. It’s payment will be spread out from a few months to a much shorter number of years, again depending on the agreement signed by both parties.
As per paperwork and application…
Traditional Bank Loans – Taking out a loan from a bank and similar other financial providers is considered more meticulous and tiresome. A lot of paperwork and documentation will have to be filed such as but are not limited to application forms, tax credentials, corporate books and financial reports, credit history and more. Moreover, the time from application to approval can be pretty lengthy.
Bridging Loans – Although less of a hassle, there are still documentary requirements needed when applying for bridging loans albeit not as much as traditional credit from banks and similar providers. Furthermore, approval rates are higher and are released much faster.