Hard Money Loans in Lake Stevens
There's this amazing opportunity to renovate and flip this wonderful out of date home in a good location and it seems like the one you have been expecting for quite a while. Expert property flippers, like the young couple on Flip or Flop, HGTV's reality flipping series, are capable of hauling in a gain of forty to fifty grand on a regular basis. No need to explain that their rehabbing experience, knowledge of hard money loans, expertise in their housing market, and auction skills have been major factors to their success. With that being said, you've recently been brushing up your rehab and renovation knowledge, have got a contractor lined up and are positive that you will be able to do a great job for this house.
But where can real estate investors get money? Should you meet with a standard lending institution, such as a bank for funding, it's in all likelihood going to take, at a minimum, 4-8 weeks for the approval to be completed and your funds to be accessible. Since most home owners give preference to a fast closing, you may have to begin searching for other financing options.
Furthermore, if you have a sub-optimal credit rating or don't have a consistent source of income, it can be harder to obtain a bank loan, seeing the stricter loan criteria banks have put in place of late. So does that leave you with no other option, but to drop your aspiration of venturing into flipping? Absolutely not, seeing as you also have the Lake Stevens hard money loan alternative.
A hard money home loan in Lake Stevens can provide what's deemed essential to many real estate transactions — a fast closing of just a couple of weeks and at many times even less. And additionally, loan amounts can be made up to 70% loan-to-value of the as-is property value, as calculated by a licensed appraiser. With loan rates starting around 10%, hard money real estate loans may seem, at first glance, to be higher in price compared to traditional bank lending products. But if you appreciate that these loans are not long-term home loans, the rate of interest can be misleading. As it pertains to short-term loans of several years or even less, you should consider them the same as you would for any other expense for your project. Once you have sold the home and have made a successful return, you're able to recover this expense from the house — much like recuperating the cost of brand-new home appliances that you have installed.
Additionally, it is easy to be eligible for a hard money mortgage, even if your credit situation is not that great. Instead of focusing primarily on the person's credit score or income, Lake Stevens hard money lenders, who may be a private company or an individual person, authorize a loan after assessing the home value, its marketability, its location, and the likelihood of getting back their money in case of foreclosure. Additional factors that influence a person's approval for a hard money real estate loan can include how much money he is able to put into a down payment, his prior experience as a real estate investor, and price of similar, fairly recently sold residences in the vicinity.
If you happen to have stumbled upon a really good fixer-upper with a significant probability of returns, you've also stumbled upon a hard money lender in Lake Stevens who's willing to provide financing for your flipping ventures. Submit the form or give us a call to talk about the property you have in mind.