Hard Money Loans in Redmond
There is this amazing possibility for fixing and flipping this wonderful outdated home in a fantastic location and it looks a lot like the one you've been wanting for a long time. You've heard that veteran home flippers, much like the couple on HGTV's Flip or Flop, turn a remarkable average return close to $40,000 - $50,000. Undoubtedly, you also know that their great results are due to the fact that they're experts, are well versed in hard money loans, they understand market trends quite well and they also are good at working a public auction to purchase their properties at a reasonable price. Nonetheless, your rehab and renovation knowledge isn't bad either — aside from that, you've already identified an ideal contractor to take on the home.
But money can be a different issue altogether. If you meet with a common lending institution, like a bank for funding, it's likely going to take, at the very least, 30-60 days for your approval to come through and your money to be accessible. Since most sellers give preference to a fast closing, you may want to start looking for some other financing options.
With banks bringing in harder loan standards in recent times, it's become tougher for a self-employed person to get a home loan, especially when his credit rating is not flawless. So must you give up and forego your aspiration to get into the real estate market? Certainly not, because you can always go the Redmond hard money loan route to finance your rehab project.
A hard money home loan in Redmond gives you what is deemed crucial to most real estate sales — a quick closing of only a couple of weeks and oftentimes less. Aside from that, loan amounts can be made up to 70% loan-to-value of the "as is" house's valuation, as deemed by a licensed appraiser. A number of people believe hard money real estate loans to be higher priced than customary financing, considering interest rates for these loans ordinarily start off at 10%. But the term lengths for these loans tend to be comparatively shorter, which means the interest rate is far less important. The cost of such short-term loans should be looked at much like any other cost that you might encounter in the course of the project. Once you have turned the property and have made a positive financial gain, you're able to reclaim this expense from the home — the same as recuperating the money spent on the brand-new home appliances that you put in.
Apart from this, hard money mortgages are easy qualifying, even if you have got a weak credit score. As an alternative for focusing solely on the borrower's credit score or net income, Redmond hard money lenders, who may be a privately owned company or an individual, authorize a loan as a result of examining the property value, its marketability, where it is located, and the likelihood of getting back their money should they have to foreclose the loan. How much a borrower can put down beforehand towards the house, how much practical experience he has in real estate investments, and selling price of comparative properties in the area are other factors that go into ascertaining an applicant's suitability for a hard money real estate loan.
Finding a hard money lender in Redmond to fund your real estate project is not hard, as long as the opportunity that lies ahead of you is promising and offers a strong prospect for returns. Fill out the form or give us a call and let's talk about the project you have in mind.