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.
Many of these lenders will approve your loan within a week to 10 days so you can purchase a home on a short sale or foreclosure before the property is listed for sale. This is ideal for real estate investors who are looking to turn a profit quickly by fixing up a home and selling it for the fair market value. They in turn repay the lender and walk away with some cash in hand.
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.
Another advantage of this type of loan is that there are fewer requirements to qualify as with a traditional loan. It is not based on your credit scores, but rather the asset of the property and home. You get the loan based on the value of the property you want to invest in and if you default on the loan the lender gets the property and can sell it for fair market value or the cost of the loan.
Having this lending option available to you however, does make entering this field a lot easier and more profitable over time. Many REIs rely on quick funding so they can flip houses quickly and move on to the next venture. It is a fun and exciting career if you enjoy fixing up distressed properties for a living.
For some investors this type of funding may not be right for them. You must weigh all the variables and decide if it is the right way to go. If you have poor credit and can't get a traditional loan then you may need to consider this source instead.
With any type of business deal you must do your due diligence and research so that you are not in the dark about any aspect of any deal. Make sure you read the fine print and if necessary ask a professional for help. The final choice is yours to make so make an informed choice.
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.
Many of these lenders will approve your loan within a week to 10 days so you can purchase a home on a short sale or foreclosure before the property is listed for sale. This is ideal for real estate investors who are looking to turn a profit quickly by fixing up a home and selling it for the fair market value. They in turn repay the lender and walk away with some cash in hand.
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.
Another advantage of this type of loan is that there are fewer requirements to qualify as with a traditional loan. It is not based on your credit scores, but rather the asset of the property and home. You get the loan based on the value of the property you want to invest in and if you default on the loan the lender gets the property and can sell it for fair market value or the cost of the loan.
Having this lending option available to you however, does make entering this field a lot easier and more profitable over time. Many REIs rely on quick funding so they can flip houses quickly and move on to the next venture. It is a fun and exciting career if you enjoy fixing up distressed properties for a living.
For some investors this type of funding may not be right for them. You must weigh all the variables and decide if it is the right way to go. If you have poor credit and can't get a traditional loan then you may need to consider this source instead.
With any type of business deal you must do your due diligence and research so that you are not in the dark about any aspect of any deal. Make sure you read the fine print and if necessary ask a professional for help. The final choice is yours to make so make an informed choice.
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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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