Hard Money Loans in Lacey
A remarkable deal on a fix and flip property located in a good subdivision suddenly shows up — sounds too good to be true. Expert residential home flippers, such as the young married couple on Flip or Flop, HGTV's reality flipping program, are capable of hauling in a gain of $40-$50k for most homes. And sure, they are helped in a major way via their professional know-how, auction abilities and knowledge of hard money loans. Still, your rehab and renovation skills aren't bad either — aside from that, you've already identified a suitable building contractor to tackle the project.
But how do real estate investors get money? When you opt for a conventional loan from the bank, you will have to wait roughly 1 to 2 months before the loan is authorized and your funding is ready to go. With all the home owners seeking a fast closing, that does not appear to be a good option to you in the slightest.
On top of this, banks have already been tightening their lending requirements in recent times, rendering it more hard for people to receive an ordinary home loan if their credit rating is not flawless or he is lacking a consistent salaried profession. So should you give up and forego your desire to embark into real estate? By no means, because you could always go the Lacey hard money loan route to pay for your flipping project.
A hard money home loan in Lacey offers what is considered essential to most real estate transactions — a fast closing of just a 2-3 weeks and oftentimes less. Besides that, hard money lenders frequently agree to loans up to 70% LTV of the property value, as calculated by a professional third-party appraiser. With interest rates starting out at about 10%, hard money real estate loans may seem, at first, to be more pricey as compared with traditional bank lending products. But the time frames of these loans tend to be quite shorter, which makes the interest rate far less important. Short-term loans of several months to a few years are best understood in terms of cost of capital, the same as any other financial outlay involved with a project. And once you've sold the house, recuperating this expense is comparable to recouping the expense for the kitchen and bath improvements you performed.
Aside from that, hard money mortgages are not difficult to qualify for, even if you have got less-than-perfect credit. As an alternative for focusing strictly on the person's credit score or wages, Lacey hard money lenders, who can be a private company or an individual person, authorize a loan after examining the property value, its salability, where it is located, and the possibility of recouping their capital in the event of foreclosure. Additional variables that impact a customer's approval for a hard money real estate loan can include how much money he can put into a down payment, his prior experience as a real estate investor, and selling price of comparable, recently sold properties in the area.
So if you have stumbled on an excellent real estate opportunity with a significant prospect of returns, you have also discovered a hard money lender in Lacey who is happy to finance your fix and flip ventures. Enter your info into the form or get in touch with us via phone to discuss your property or properties.