There is a lot of money to be made by buying and reselling real estate. People even love watching how professionals do it on reality television. If you are interested in the idea of starting this kind of business, you will need funds to buy a house and make the repairs. There is short term, and long term, money available. You just have to decide which of the fix and flip loans Seattle lenders offer is the best one for you.
For those without a lot of experience, a hard money loan could be a good choice. This will be a short term loan, usually one to three years, and the real estate is your collateral. With these types of loans lenders aren't so much concerned about how much experience you've got. They are most interested in the value of the property. A hard money loan will include your purchase and the repair costs.
You can get eighty to ninety percent of the purchase price, but it has to be paid back within three years, if not sooner. The rates can vary anywhere from seven to twelve percent. That doesn't include the closing costs and lending fees. Those will cost you between a little over three and fifteen percent.
For more seasoned resellers, who already have some real estate inventory, there is the cash out refinancing strategy. The individual refinances the mortgage on one home in order to purchase another investment property. This works for investors who want to make an all cash purchase on a piece of real estate or use the money as a down payment on one.
Lenders will approve up to three quarters of the loan to value for a cash out refinancing package. You can spread it out over fifteen to thirty years at an interest rate of three to five percent. Closing costs and lender fees average around five percent. You will have to have a credit score of at least six forty.
A home equity line of credit is another possibility, and many investors prefer it to other types of loans. It works pretty much like a credit card. If you haven't found a fixer upper to buy yet, this money won't start accruing interest until you start using it. You have to be an owner occupant because the credit line can only be applied to your primary residence.
There is money for those who are interested in buying a house to renovate and live in full time. A lender can offer you a permanent loan for thirty years that includes an FHA 203 rehab loan. Thirty-five thousand dollars is the maximum amount you can get for repairs, and you must follow HUD's guidelines when it comes to which repairs are allowed. There is also an extended period before closing.
Many people have made very successful careers out of buying and selling real estate. There are lot of ways to finance the ventures, if you know where to look. When you decide to try something like this, you should research all the financing options first.
For those without a lot of experience, a hard money loan could be a good choice. This will be a short term loan, usually one to three years, and the real estate is your collateral. With these types of loans lenders aren't so much concerned about how much experience you've got. They are most interested in the value of the property. A hard money loan will include your purchase and the repair costs.
You can get eighty to ninety percent of the purchase price, but it has to be paid back within three years, if not sooner. The rates can vary anywhere from seven to twelve percent. That doesn't include the closing costs and lending fees. Those will cost you between a little over three and fifteen percent.
For more seasoned resellers, who already have some real estate inventory, there is the cash out refinancing strategy. The individual refinances the mortgage on one home in order to purchase another investment property. This works for investors who want to make an all cash purchase on a piece of real estate or use the money as a down payment on one.
Lenders will approve up to three quarters of the loan to value for a cash out refinancing package. You can spread it out over fifteen to thirty years at an interest rate of three to five percent. Closing costs and lender fees average around five percent. You will have to have a credit score of at least six forty.
A home equity line of credit is another possibility, and many investors prefer it to other types of loans. It works pretty much like a credit card. If you haven't found a fixer upper to buy yet, this money won't start accruing interest until you start using it. You have to be an owner occupant because the credit line can only be applied to your primary residence.
There is money for those who are interested in buying a house to renovate and live in full time. A lender can offer you a permanent loan for thirty years that includes an FHA 203 rehab loan. Thirty-five thousand dollars is the maximum amount you can get for repairs, and you must follow HUD's guidelines when it comes to which repairs are allowed. There is also an extended period before closing.
Many people have made very successful careers out of buying and selling real estate. There are lot of ways to finance the ventures, if you know where to look. When you decide to try something like this, you should research all the financing options first.
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