As a real estate investor you may have heard that there are other options available to purchase a home even if you have bad credit or low credit scores. There are many different types of lenders each with their own requirements. Perhaps the best option for your situation is using hard money lenders Seattle, WA area.
A hard money lender is a private individual or company that has money to loan for investment purposes. They usually work with real estate investors who need quick funding on homes that have yet to be listed or are in foreclosure or otherwise distressed property. These types of lenders do not have strict requirements and do not base the loan on your credit scores but rather the value of the property.
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.
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.
A hard money lender is a private individual or company that has money to loan for investment purposes. They usually work with real estate investors who need quick funding on homes that have yet to be listed or are in foreclosure or otherwise distressed property. These types of lenders do not have strict requirements and do not base the loan on your credit scores but rather the value of the property.
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.
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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