Hard Money Loans in Seattle
Imagine you've stumbled upon this truly good deal for a fix and flip property in a great neighborhood, and you're either an experienced real estate investor or a newbie who hopes to try out flipping houses. Everybody knows that expert professional flippers, along the lines of Tarek and Christina El Moussa who do HGTV's reality flipping show, Fix or Flop, are able to make an average profit of $40,000 to $50,000 when they rehab properties. And yes, they are aided in a big way due to their professional experience, auction abilities and familiarity with hard money loans. That said, you have likewise been cultivating your rehab and remodeling knowledge, have a very good contractor ready to go and are positive that you can do an impressive job on this home.
But how do you obtain the necessary financing for flipping? If you opt for a regular loan from the bank, you will wind up waiting around somewhere around 1-2 months up until the mortgage loan is approved and your funding is available. Because most home owners give preference to a fast closing, you may have to begin searching for additional funding options.
With banks introducing more challenging loan requirements in the last few years, it's become more challenging for a self-employed person to obtain a home loan, particularly if his credit circumstances are not perfect. So must you stop trying and abandon your aspiration to venture into real estate? Never, considering that you could always go the Seattle hard money loan route to pay for your home flipping project.
A hard money home loan in Seattle promises what is possibly most crucial to real estate investors — a very fast closing time period of as little as 14 days. Furthermore, hard money lenders can approve funding up to 70% LTV of the property's valuation, as identified by a professional third-party evaluation. At first, hard money real estate loans, with starting lending rates of 10%, appear to be higher priced than bank lending options. But in reality, the rate of interest isn't as relevant for these loans, simply because they will never be long-term financing. The cost of such short-term loans should be looked at on par with every other expenditure that you would encounter during the project. Once you've sold the home and have made a successful profit, you'll be able to recoup this expense from the home — just like recovering the money spent on the brand-new appliances for the kitchen that you have put in.
Moreover, even individuals with poor credit will be able to qualify for a hard money mortgage. Seattle hard money lenders don't take on a loan solely on the basis of the borrower's credit score — rather they also look at the property or home, where it is located and what it is worth, and the property's capability to pay back the loan independent of the borrower. Adding to that, if the person can demonstrate past experience in equivalent real estate projects, can put down cash for the down payment, and the value of equivalent houses in the neighborhood works to his benefit, he will have a really good likelihood of being eligible for a hard money real estate loan.
Searching for a hard money lender in Seattle to finance your renovation project is not hard, assuming that the opportunity that lies before you is promising and has a strong potential for returns. Submit the contact form on this page or get in touch with us via phone to talk about your property.