Savvy real estate investors have made billions of dollars buying low, renovating, and selling for a tidy profit. People who make a living flipping houses have budgets they stick to and know how to get the best fix and flip loans Seattle lenders can offer them. They are looking a short term loans with a good interest rate and no prepayment penalties.
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.
Investors with multiple properties sometimes opt for cash out refinancing. With this loan the flipper can refinance current real property owned in order to purchase more real estate. There has to be 30 to 40 percent equity in the owned property in order to make this option work. Portfolio investors like this loan because it gives them a chance to finance a number of properties with a single loan.
Home equity lines of credit resemble credit cards as much as a loan. The cash an investor can get from a line of credit is dependent of the value of the real estate. The property must be owner occupied and have at least 30 percent equity in it in order to qualify for the line of credit. This loan works for an investor waiting for the right real estate opportunity to come along, like a non-distressed or foreclosure property.
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.
Bridge loans are meant to bridge the gap between the two real estate deals. You borrow the money for a short period when you want to purchase one property before selling another one. The loan period is anywhere from two weeks to a year. To qualify you have to prove you have the ability to pay two mortgages and have at least twenty percent equity in the existing 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.
There is a lot of money to be made flipping real estate. You have to know what you are doing though. You also need to know how to borrow money wisely and which loans are the best deals.
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.
Investors with multiple properties sometimes opt for cash out refinancing. With this loan the flipper can refinance current real property owned in order to purchase more real estate. There has to be 30 to 40 percent equity in the owned property in order to make this option work. Portfolio investors like this loan because it gives them a chance to finance a number of properties with a single loan.
Home equity lines of credit resemble credit cards as much as a loan. The cash an investor can get from a line of credit is dependent of the value of the real estate. The property must be owner occupied and have at least 30 percent equity in it in order to qualify for the line of credit. This loan works for an investor waiting for the right real estate opportunity to come along, like a non-distressed or foreclosure property.
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.
Bridge loans are meant to bridge the gap between the two real estate deals. You borrow the money for a short period when you want to purchase one property before selling another one. The loan period is anywhere from two weeks to a year. To qualify you have to prove you have the ability to pay two mortgages and have at least twenty percent equity in the existing 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.
There is a lot of money to be made flipping real estate. You have to know what you are doing though. You also need to know how to borrow money wisely and which loans are the best deals.
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.
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