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.
One of the preferred financing options is hard money. Investors like this because they can get money for properties in bad shape. The qualifications are less stringent for this kind of loan, which speeds up the approval time. This is the loan most beginning flippers need because mortgage lenders are looking at property values rather than investor expertise.
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.
Another loan available to those who already own property is a home equity line of credit. This resembles a credit card agreement more than a traditional loan. The amount of credit the investor can get depends on the value of the residence. A line of credit can only be taken out on an owner occupied property. There has to be at least thirty percent equity in the existing home to qualify for a line of credit.
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.
A bridge loan is meant to span the gap in time between two property deals. Investors borrow short term money to buy a property before they sell another piece of real property. The loan comes due anywhere from less than a month to twelve months. In order to get this loan, you have to show you have sufficient capital to handle dual mortgages. Lenders require 20 percent equity in the owned 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.
You can make a great living flipping real estate. It is important to know exactly what you are doing however. You have to learn how and where to find the loan deals that will give you easy access to the funds you need.
One of the preferred financing options is hard money. Investors like this because they can get money for properties in bad shape. The qualifications are less stringent for this kind of loan, which speeds up the approval time. This is the loan most beginning flippers need because mortgage lenders are looking at property values rather than investor expertise.
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.
Another loan available to those who already own property is a home equity line of credit. This resembles a credit card agreement more than a traditional loan. The amount of credit the investor can get depends on the value of the residence. A line of credit can only be taken out on an owner occupied property. There has to be at least thirty percent equity in the existing home to qualify for a line of credit.
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.
A bridge loan is meant to span the gap in time between two property deals. Investors borrow short term money to buy a property before they sell another piece of real property. The loan comes due anywhere from less than a month to twelve months. In order to get this loan, you have to show you have sufficient capital to handle dual mortgages. Lenders require 20 percent equity in the owned 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.
You can make a great living flipping real estate. It is important to know exactly what you are doing however. You have to learn how and where to find the loan deals that will give you easy access to the funds you need.
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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