Hard Money Loans in Olympia
An incredible buy on a fix and flip opportunity located in a nice subdivision shows up out of the blue — sounds too good to be true. You've probably heard that professional home flippers, such as the married couple on HGTV's Flip or Flop, turn an impressive average return of around $40,000 - $50,000. Of course, you also realize that their success are attributed to the fact that they're experts, are well versed in hard money loans, they understand the market quite well and in addition, they are good at working a public auction to buy their homes at an appropriate price. Having said that, you have likewise been cultivating your rehab and remodeling knowledge, have a licensed contractor ready for the project and are positive that you're capable of doing a great job for this house.
But where can real estate investors get funds? A standard lending institution, say for example a bank, takes at least one to two months to approve the financing and release the funds. So if you're expecting a fast closing, you have to understand that this will set you back by weeks, making you lose out on the opportunity.
To add to it, banks have already been tightening their lending criteria as of late, rendering it more hard for people to receive a regular loan if their credit rating is not flawless or he does not possess a regular salaried occupation. So does this mean you are without an option, but to abandon your aspiration of getting into rehabbing? By no means, especially when Olympia hard money loans can help you accomplish great things in real estate.
When you get a hard money home loan in Olympia, you have access to what's probably most important to real estate offers across the country — a very fast closing of approximately two weeks. What's more, the LTV value can reach up to 70% of the home value, as determined by a competent appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, appear to be higher in price than bank lending options. But the term lengths for these loans tend to be relatively shorter, making the interest rate far less important. As it pertains to short-term loans of a few years or less, you should think of them the same as you might for every other expenditure for the project. Right after you renovate and sell the house, recuperating this expense is no different than recuperating the money you spent for stainless steel appliances you put in the home.
Apart from this, hard money mortgages are easy qualifying, even when you have poor credit. Rather than focusing solely on the borrower's credit score or income, Olympia hard money lenders, who can be a privately owned company or an individual, approve a loan after examining the home value, ease of marketability, its location, and the likelihood of recuperating their money in case of foreclosure. Additional variables that influence a person's acceptance for a hard money real estate loan can include what amount of money he can put towards a down payment, his previous experience as a real estate investor, and selling price of similar, just recently sold properties in the neighborhood.
So in case you have stumbled on a wonderful home to flip with a high probability of returns, you have also discovered a hard money lender in Olympia who's happy to provide funding for your fix and flip ventures. Submit the contact form on this page or get in touch with us via phone and let's discuss the property or properties you have in mind.