The myth is that you have to have finance readily available before you buy a property. However, I firmly believe that putting an offer in is the first step to financing your investment property.


Why putting in an offer is the first step to financing your investment property:

  1. It gives the lender a value to analyse the deal and say yes or no to lending. Rather than you keep changing the purchase price and wasting time
  2. Finance is always easier to find then a superb property deal
  3. You can do your deal analysis first and decide if it would work for you and what interest rate you need to achieve and then go to lenders who are offering those kind of rates
  4. Your finance is never certain until you exchange so there is no need to show proof of finance at the time you submit an offer… it will depend on the terms of the deal!
  5. You can leave a low offer on the table and tell the seller that if they can’t sell it at a higher price you will buy it from them from £x. At the time the offer is accepted you can then get finance. Otherwise, yet again you are wasting yours and the lenders time before you even know you’ve got an accepted offer!


There should be some pre-preparation before any deal. Finding out what cash you have available and your borrowing power are essential. Looking at your credit score and asking your bank whether they would lend to you and how much is helpful.


Once you’ve got that info you should then go out and start finding the right property. This is often more time consuming than finding finance as fabulous deals take digging.


If you spot that ideal property then it’s time to start experimenting with price. Complete your deal analysis, look at comparable property evidence. Work out what a really awesome price would be for the property, that would mean you could increase the value easily.


Then offer a really low ball offer. See what the feedback is. You will get an indication of what the seller is looking to achieve.


With that figure, then go and investigate finance. Speak to long term lenders and short-term lenders. Find out if you can get lending and the cost. Will this cover your deal?


Incorporate this information into your deal analysis and work out if it still works and is an awesome deal. If it is… fabulous it’s time to move it forward!

Let me know in the comments section below… what offer will you be putting in as a result of this blog?

Natasha