Many of the drawbacks to investing in real estate is getting quick funding for your needs. Traditional lenders make it difficult at best to get the loan you need to buy a property and they don't provide any additional funds to fix it up unless you take out another loan for that. The process can be daunting and frustrating. You can however get money quickly to invest from 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.
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 way the loan works is ideal for real estate investors but it doesn't fit every situation or circumstance. You must determine if this type of funding is right for your project and whether you can sell the property at a profit instead of a loss. Usually after a property has been rehabilitated, the value of the home goes up to a fair market value.
Your credit scores are not consider for these types of loans because the loan is asset based. The house if the collateral for these loans which makes them easier to obtain and use. Banks do not function this way. You will also be able to have access to the funding usually within a few days to a week.
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.
Again, you must determine if this method is right for you and whether you want to take the risk. As with any business venture there are always risks and a downside but if you are careful and know the business inside and out you should be in a position to make this work for you. This method seems to be the easiest to get into and can be very profitable for you.
You must do your due diligence before entering into any agreement and seek professional help if needed. Always go over the contract with a fine tooth comb so there are no surprise clauses or wording that causes confusion. You ultimately make the final choice as to whether or not this is right for you.
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.
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 way the loan works is ideal for real estate investors but it doesn't fit every situation or circumstance. You must determine if this type of funding is right for your project and whether you can sell the property at a profit instead of a loss. Usually after a property has been rehabilitated, the value of the home goes up to a fair market value.
Your credit scores are not consider for these types of loans because the loan is asset based. The house if the collateral for these loans which makes them easier to obtain and use. Banks do not function this way. You will also be able to have access to the funding usually within a few days to a week.
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.
Again, you must determine if this method is right for you and whether you want to take the risk. As with any business venture there are always risks and a downside but if you are careful and know the business inside and out you should be in a position to make this work for you. This method seems to be the easiest to get into and can be very profitable for you.
You must do your due diligence before entering into any agreement and seek professional help if needed. Always go over the contract with a fine tooth comb so there are no surprise clauses or wording that causes confusion. You ultimately make the final choice as to whether or not this is right for you.
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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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