Hard Money Loans in SeaTac
An outstanding bargain on a fix and flip property located in a nice neighborhood suddenly turns up — sounds so good that it's hard to believe. Most folks know that expert professional flippers, like Tarek and Christina El Moussa who star in HGTV's reality flipping program, Fix or Flop, can make an average profit margin of forty to fifty thousand dollars in their rehab business. Undoubtedly, you also recognize that their success can be credited to the fact that they're experts, are knowledgeable in hard money loans, they know the marketplace quite well and additionally, they know how to work a public auction for getting a reasonable price. That said, you've also been developing your rehab and remodeling skills, have got a contractor lined up and are positive that you will be able to do a great job on this home.
But how do you get the necessary funding for home flipping? For those who go after a traditional bank loan, you will end up waiting approximately 1-2 months up until the time the mortgage loan is authorized and your funding is readily available. Because most home owners prefer a fast closing, it may be advisable to start searching for some other financing options.
What's more, if you have an unfavorable credit rating or don't have a regular income source, it usually is tougher for you to obtain bank financing, considering the tougher loan criteria banks have introduced lately. So should you stop trying and forego your dream to venture off into real estate? By no means, because you can always use the SeaTac hard money loan approach to fund your flipping project.
A hard money home loan in SeaTac offers you what is considered imperative to most real estate sales — a quick closing of only a couple of weeks and at times even less. Further, loans can be made up to 70% loan-to-value of the as-is house's valuation, as deemed by a professional appraiser. A number of people believe hard money real estate loans to be more expensive than ordinary loans, considering lending rates for these loans usually start off at 10%. But the term lengths for these loans are much shorter, which makes the interest rate less important. The price of such short-term loans should be considered on par with every other expense that you will have to meet for the project. Right after you remodel and sell the house, recovering this expense is just like recovering the expense for stainless steel appliances you installed in the house.
Additionally, it is easy to be eligible for a hard money mortgage, regardless if your credit rating is not that great. As an alternative for focusing exclusively on the person's credit score or wages, SeaTac hard money lenders, who may be a private company or an individual, approve a loan after examining the home value, its salability, its location, and the likelihood of recovering their money in the event of foreclosure. Several other variables that affect a borrower's acceptance for a hard money real estate loan include what amount of money he can put towards a down payment, his past experience as a real estate investor, and selling price of similar, recently sold properties in the neighborhood.
Searching for a hard money lender in SeaTac to fund your fix and flip endeavor is not very hard, provided that the opportunity in front of you is promising and offers a good prospect for returns. Enter your info into the contact form or get in touch with us via phone to discuss your property or properties.