If you are an investor of real estate and need fast funding, you realize that you may not be able to get what you need through a traditional lender. There are rules and procedures that must be followed and you must qualify by your credit score. If it is not good you don't get the loan which can prove to be frustrating if you have landed on a hot deal. This is when the advantage of using hard money lenders Seattle, WA area come into play.
These types of lenders specialize in hard to finance properties such as fixer uppers and rehab properties. They will help real estate investors secure this type of property by giving them a loan quickly and easily along with rehab funding above the market value of the home so that they can fix it up and sell it for a profit. House flipping is becoming a popular past time with many real estate investors in the know.
Using this method of financing is good for house flipping or short sales and the funding can be receive rather quickly from the lender. The lender will give you the funds to purchase the property plus rehab funding to fix it up and then turn around and sell it for a profit. You then repay the lender and keep the profit you made from the sale of the home.
The way the loan works is ideal for real estate investors but it doesn't fit every situation or circumstance. You must determine if this type of funding is right for your project and whether you can sell the property at a profit instead of a loss. Usually after a property has been rehabilitated, the value of the home goes up to a fair market value.
If you are looking at investing in real property consider the lenders available to you and compare interest rates and the final cost of the loan. Mainly can you afford the cost of the loan. Sometimes you may not be able to sell the distressed property at a profit and only break even, this is an unfortunate situation since you must repay the lender once you sell the property and can be a disadvantage if you do not at least make the fair market value of the home.
If you are an REI and are looking for quick funding then this is the source you should consider. There is risk with any business venture but there is less red tape and hoops to jump through for the funds you need. Traditional banks make you wait approximately 30 days before your funding comes through which is not the ideal situation for a short sale or foreclosure.
As stated these types of loans are not for every investor and you must determine if it is right for you and your situation. Depending on your credit rating you may want to consider this option. Investing in real estate is a pretty solid venture but depending on the market it can be risky as well.
With any type of business deal you must do your due diligence and research so that you are not in the dark about any aspect of any deal. Make sure you read the fine print and if necessary ask a professional for help. The final choice is yours to make so make an informed choice.
These types of lenders specialize in hard to finance properties such as fixer uppers and rehab properties. They will help real estate investors secure this type of property by giving them a loan quickly and easily along with rehab funding above the market value of the home so that they can fix it up and sell it for a profit. House flipping is becoming a popular past time with many real estate investors in the know.
Using this method of financing is good for house flipping or short sales and the funding can be receive rather quickly from the lender. The lender will give you the funds to purchase the property plus rehab funding to fix it up and then turn around and sell it for a profit. You then repay the lender and keep the profit you made from the sale of the home.
The way the loan works is ideal for real estate investors but it doesn't fit every situation or circumstance. You must determine if this type of funding is right for your project and whether you can sell the property at a profit instead of a loss. Usually after a property has been rehabilitated, the value of the home goes up to a fair market value.
If you are looking at investing in real property consider the lenders available to you and compare interest rates and the final cost of the loan. Mainly can you afford the cost of the loan. Sometimes you may not be able to sell the distressed property at a profit and only break even, this is an unfortunate situation since you must repay the lender once you sell the property and can be a disadvantage if you do not at least make the fair market value of the home.
If you are an REI and are looking for quick funding then this is the source you should consider. There is risk with any business venture but there is less red tape and hoops to jump through for the funds you need. Traditional banks make you wait approximately 30 days before your funding comes through which is not the ideal situation for a short sale or foreclosure.
As stated these types of loans are not for every investor and you must determine if it is right for you and your situation. Depending on your credit rating you may want to consider this option. Investing in real estate is a pretty solid venture but depending on the market it can be risky as well.
With any type of business deal you must do your due diligence and research so that you are not in the dark about any aspect of any deal. Make sure you read the fine print and if necessary ask a professional for help. The final choice is yours to make so make an informed choice.
About the Author:
Get a summary of important things to consider before picking a lender and more information about reliable hard money lenders Seattle area at http://www.privatecapitalnw.com now.
Comments
Post a Comment