Hard Money Loans in Federal Way
Suppose you've come across this truly good deal on a fix and flip property you found in a terrific location, and you happen to be either a skilled real estate investor or a newbie who hopes to try out flipping houses. Professional property flippers, such as the young married couple on Flip or Flop, HGTV's reality flipping show, are able to haul in a profit of $40-$50k as an average on multiple occassions. No need to explain that their rehabbing experience, understanding of hard money loans, familiarity with the housing market, and auction talents have been large factors to their success. On the other hand, you're convinced that your impressive rehab and renovation talents will enable you to do an outstanding job on this property — what's more, you have already arranged to have one of the best building contractors in the area to take on the job.
But how do you find the necessary funding for home flipping? A standard lending institution, say for example a bank, takes a minimum of 1 to 2 months to approve the financing and release the funds. Since most sellers prefer a fast closing, you might have to begin seeking out additional financing alternatives.
With banks adding more challenging loan requirements in the recent past, it has become tougher for a self-employed person to obtain a mortgage loan, especially when his credit rating is not perfect. So does that mean you are without an option, but to abandon your ambition of getting into home flipping? Under no circumstances, particularly while Federal Way hard money loans enable you to achieve many amazing things in the real estate market.
A hard money home loan in Federal Way provides you with what's probably most crucial to real estate investors — a very fast closing time period of as few as two weeks. Additionally, loan amounts can be done for up to 70% loan-to-value of the as-is valuation, as established by a licensed appraiser. With loan rates starting at about 10%, hard money real estate loans might seem, initially, to be higher in price when compared with traditional bank loans. But once you consider these loans are not long-term mortgage loans, the rate of interest tends to be misleading. As it pertains to short-term loans of a handful of years or even less, you should consider them just like you would other expenses for your project. After you renovate and sell the house, recovering this expense is just like recuperating the money you spent for home appliances you installed in the place.
Also, it is simple to obtain a hard money mortgage, regardless if your credit rating is not that superb. The borrower's credit score isn't the lone determining factor for Federal Way hard money lenders — they also examine the house, its market valuation, where it is located, and its capability to return their financial commitment if things should not go as intended. Additional criteria that have an impact on an applicant's eligibility for a hard money real estate loan can include how much he is able to put into a down payment, his previous experience as a real estate investor, and price of comparative, fairly recently sold properties in the neighborhood.
So in the event you run into a very good and lucrative investment opportunity, relax knowing you'll have a hard money lender in Federal Way, able to loan you the money you may need. Submit the form on this page or call us to discuss your property or properties.