Hard Money Loans in Burien
Suppose that you've encountered this excellent deal for a fix and flip property in a terrific location, and you're either a seasoned real estate investor or a newbie who wants to try out flipping houses. Expert home flippers, like the young couple on Flip or Flop, HGTV's reality flipping series, are capable of earning a gain of $40-$50k for the majority of homes. And indeed, they are helped in a big way by their professional know-how, auction skills and familiarity with hard money loans. Nevertheless, you are convinced that your superb rehab and remodeling skills will help you do a superb job for this project — furthermore, you have already lined up one of the finest general contractors in the area to take on this project.
But where can you obtain the needed funding for flipping? In the event you apply for a normal bank loan, you will have to wait around roughly 30-60 days until eventually the money is approved and your funds are accessible. Because most home owners would prefer a fast closing, you may want to begin searching for other funding options.
To add to it, banks have been tightening up their lending requirements in recent years, which makes it challenging for a person to get a conventional loan if their credit situation is not perfect or he does not possess a consistent salaried profession. So should you admit defeat and abandon your dream to venture into the real estate market? Most certainly not, given that you always have the Burien hard money loan option.
When you put in an application for a hard money home loan in Burien, you will get what is perhaps most important to real estate negotiations throughout the country — a fast closing of around a couple weeks. Furthermore, hard money lenders frequently agree to lending up to 70% LTV of the property or home value, as estimated by a qualified third-party appraiser. A number of people consider hard money real estate loans to be costlier than ordinary loans, considering lending rates of such loans often start off at 10%. But in reality, the interest rate isn't as useful a measure for these loans, because they will never be long-term financing. Short-term loans of several months to a few years are best understood as cost of capital, the same as any other expenditure involved with a project. When you have turned the house and have made a successful gain, you're able to recoup this expense from the home — the same as recovering the money spent on the brand-new appliances for the kitchen that you installed.
Aside from that, hard money mortgages are not hard to qualify for, even if you posses a low credit score. Burien hard money lenders do not approve a loan exclusively on the basis of the applicant's credit score — rather they also look at the home, its location and value, and the property's ability to pay back the loan independent of the person. Adding to that, if the individual have proven experience in equivalent real estate ventures, can put down money towards the down payment, and the price of equivalent houses in the vicinity works in his favor, he stands a very good shot of being eligible to obtain a hard money real estate loan.
So in case you have found a really great real estate opportunity with a high prospect of returns, you've also stumbled upon a hard money lender in Burien who's prepared to provide financing for your fix and flip projects. Submit the form on this page or get in touch with us via phone to discuss your project.