Smart real estate investors understand how much money there is to be made buying property for less than market value, renovating it, and then reselling for a hefty profit. These professionals know how important it is to stick to the prescribed budget and where to find the best fix and flip loans Seattle can offer. They are looking for short term, competitive interest rate, no prepayment penalty loans.
A hard money loan is great for flippers because lenders will loan money for properties that are in poor shape. There are fewer qualifications with a hard money loan, which mean you can have the money in as little as fifteen days. This is a good loan for beginning flippers because lenders are more interested in the value of the property than the experience of the flipper.
Some experienced investors prefer a cash out refinance money because they already own property. The investor refinances one property so he has the cash to buy another one. There is a requirement of thirty to forty percent equity in order for the home being refinanced to qualify. Portfolio investors like this because they can finance several properties with one loan.
Another loan available to those who already own property is a home equity line of credit. This resembles a credit card agreement more than a traditional loan. The amount of credit the investor can get depends on the value of the residence. A line of credit can only be taken out on an owner occupied property. There has to be at least thirty percent equity in the existing home to qualify for a line of credit.
Similar to the home equity credit line is the investment property line of credit. Investors use this type of loan strictly to buy investment real estate. The loan is short term and intended specifically for purchasing and repairing non-owner occupant real estate. The borrower pays interest only on the money he actually uses. This is a great option for flippers with multiple properties.
A bridge loan is meant to span the gap in time between two property deals. Investors borrow short term money to buy a property before they sell another piece of real property. The loan comes due anywhere from less than a month to twelve months. In order to get this loan, you have to show you have sufficient capital to handle dual mortgages. Lenders require 20 percent equity in the owned property.
A permanent bank loan is not really for flippers. This is a fifteen to thirty year loan for the purchase of long term owner occupant or non-owner occupant properties in good shape. Rehabers who want to live in a property for a period of time before reselling are good candidates for a permanent bank loan.
You can make a great living flipping real estate. It is important to know exactly what you are doing however. You have to learn how and where to find the loan deals that will give you easy access to the funds you need.
A hard money loan is great for flippers because lenders will loan money for properties that are in poor shape. There are fewer qualifications with a hard money loan, which mean you can have the money in as little as fifteen days. This is a good loan for beginning flippers because lenders are more interested in the value of the property than the experience of the flipper.
Some experienced investors prefer a cash out refinance money because they already own property. The investor refinances one property so he has the cash to buy another one. There is a requirement of thirty to forty percent equity in order for the home being refinanced to qualify. Portfolio investors like this because they can finance several properties with one loan.
Another loan available to those who already own property is a home equity line of credit. This resembles a credit card agreement more than a traditional loan. The amount of credit the investor can get depends on the value of the residence. A line of credit can only be taken out on an owner occupied property. There has to be at least thirty percent equity in the existing home to qualify for a line of credit.
Similar to the home equity credit line is the investment property line of credit. Investors use this type of loan strictly to buy investment real estate. The loan is short term and intended specifically for purchasing and repairing non-owner occupant real estate. The borrower pays interest only on the money he actually uses. This is a great option for flippers with multiple properties.
A bridge loan is meant to span the gap in time between two property deals. Investors borrow short term money to buy a property before they sell another piece of real property. The loan comes due anywhere from less than a month to twelve months. In order to get this loan, you have to show you have sufficient capital to handle dual mortgages. Lenders require 20 percent equity in the owned property.
A permanent bank loan is not really for flippers. This is a fifteen to thirty year loan for the purchase of long term owner occupant or non-owner occupant properties in good shape. Rehabers who want to live in a property for a period of time before reselling are good candidates for a permanent bank loan.
You can make a great living flipping real estate. It is important to know exactly what you are doing however. You have to learn how and where to find the loan deals that will give you easy access to the funds you need.
About the Author:
You can find a summary of the advantages and benefits of taking out fix and flip loans Seattle area at http://www.privatecapitalnw.com/fix-and-flip-rehab-loans right now.
No comments:
Post a Comment