I often hear people say, “You can’t finance a vacant building.”
Well, I’m here to challenge that notion…
In this episode, we’re diving deep into the world of commercial property finance, specifically focusing on the feasibility of financing vacant property. We’ll explore the common misconceptions and uncover alternative strategies to overcome these challenges.
Key Takeaways:
- The Myth Debunked: While it’s true that traditional lenders may be hesitant to finance vacant properties, there are alternative financing options available.
- Leveraging Private Finance: Consider raising private finance to bridge the gap and secure traditional bank financing once the property is occupied or developed.
- Utilising Existing Assets: If you own other properties with equity and income, you can leverage them as collateral to secure financing for the vacant property. We have done that many times
- Business as Tenant: If your business plans to occupy the property, you can use your business’ financial strength to secure financing.
- Bridging Finance: Short-term bridging finance can provide the necessary funds to acquire the property, especially if you have a clear plan for future development or occupancy.
Additional Insights:
- The Importance of a Strong Business Plan: A well-defined business plan can significantly increase your chances of securing financing, even for vacant properties.
- The Role of Open Market Valuations: Understanding the nuances of open market valuations and their impact on financing can be crucial.
- The Power of Networking: Building relationships with lenders and investors can open doors to unique financing opportunities.
Call to Action:
If you’re considering investing in vacant commercial property, don’t let the perceived challenges deter you. By understanding the various financing options and approaching the process with a strategic mindset, you can successfully navigate the complexities of securing funding.
“The key thing here is you must have an actionable plan. Buying vacant property without it will be a non-starter.”
JOIN THE NETWORK If you want to learn more about investing in Commercial Property, why not consider joining the CPI Network? We’re a community of active investors who collaborate, share experiences, and empower each other in our Commercial Property endeavours.
Useful Links:
CPI Website – https://commercialpropertyinvestor.co.uk/
Our Sponsors – https://commercialpropertyinvestor.co.uk/podcast-sponsors/
Linkedin: https://www.linkedin.com/in/jerryalexander/
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