If you are an investor of real estate and need fast funding, you realize that you may not be able to get what you need through a traditional lender. There are rules and procedures that must be followed and you must qualify by your credit score. If it is not good you don't get the loan which can prove to be frustrating if you have landed on a hot deal. This is when the advantage of using hard money lenders Seattle, WA area come into play.
These lenders are private companies or individuals who lend money for the purpose of investing in real property. The loan is set against the asset of the property and if the borrower defaults on the loan, the lender can then sell the property to recoup their funds. These loans work best with distressed properties or properties that are in foreclosure.
Using this method of financing is good for house flipping or short sales and the funding can be receive rather quickly from the lender. The lender will give you the funds to purchase the property plus rehab funding to fix it up and then turn around and sell it for a profit. You then repay the lender and keep the profit you made from the sale of the home.
The loan is basically for real estate investors who find old properties in distress and want to fix it up and make a sale. Many times traditional banks and finance companies do not do this type of lending. They are strictly by the books and you must have a good credit rating in order to receive a loan from them, this is not the case with hard money lenders.
If you are looking at investing in real property consider the lenders available to you and compare interest rates and the final cost of the loan. Mainly can you afford the cost of the loan. Sometimes you may not be able to sell the distressed property at a profit and only break even, this is an unfortunate situation since you must repay the lender once you sell the property and can be a disadvantage if you do not at least make the fair market value of the home.
If you are a real estate investor you may want to consider this type of loan on your next venture. They are far easier to obtain than a traditional loan with hardly an red tape or hoops to jump through. The wait period for the funding is short compared to the near 30 days with a traditional lender. You also get rehab funding to fix up the property to be able to sell it for more money.
As stated these types of loans are not for every investor and you must determine if it is right for you and your situation. Depending on your credit rating you may want to consider this option. Investing in real estate is a pretty solid venture but depending on the market it can be risky as well.
As with any business venture you should research and do your homework before entering into any real estate deal. Some have had great success with being a REI but you must have the knowledge and education for this type of venture. Take courses in real estate or read books about real estate investing to get a better idea of how this works and then apply what you learn. The only way to learn this business is from real hands on experience.
These lenders are private companies or individuals who lend money for the purpose of investing in real property. The loan is set against the asset of the property and if the borrower defaults on the loan, the lender can then sell the property to recoup their funds. These loans work best with distressed properties or properties that are in foreclosure.
Using this method of financing is good for house flipping or short sales and the funding can be receive rather quickly from the lender. The lender will give you the funds to purchase the property plus rehab funding to fix it up and then turn around and sell it for a profit. You then repay the lender and keep the profit you made from the sale of the home.
The loan is basically for real estate investors who find old properties in distress and want to fix it up and make a sale. Many times traditional banks and finance companies do not do this type of lending. They are strictly by the books and you must have a good credit rating in order to receive a loan from them, this is not the case with hard money lenders.
If you are looking at investing in real property consider the lenders available to you and compare interest rates and the final cost of the loan. Mainly can you afford the cost of the loan. Sometimes you may not be able to sell the distressed property at a profit and only break even, this is an unfortunate situation since you must repay the lender once you sell the property and can be a disadvantage if you do not at least make the fair market value of the home.
If you are a real estate investor you may want to consider this type of loan on your next venture. They are far easier to obtain than a traditional loan with hardly an red tape or hoops to jump through. The wait period for the funding is short compared to the near 30 days with a traditional lender. You also get rehab funding to fix up the property to be able to sell it for more money.
As stated these types of loans are not for every investor and you must determine if it is right for you and your situation. Depending on your credit rating you may want to consider this option. Investing in real estate is a pretty solid venture but depending on the market it can be risky as well.
As with any business venture you should research and do your homework before entering into any real estate deal. Some have had great success with being a REI but you must have the knowledge and education for this type of venture. Take courses in real estate or read books about real estate investing to get a better idea of how this works and then apply what you learn. The only way to learn this business is from real hands on experience.
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Get a summary of important things to consider before picking a lender and more information about reliable hard money lenders Seattle area at http://www.privatecapitalnw.com now.
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