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.
These lenders are ideal for a short sale or house flipping, and you get the funding fairly quickly. This funding allows you to receive the value of the property plus rehab money to fix it up once you obtain it. After you rehab the property and fix it up you can then sell the home for a profit and pay off the lender and have money left over.
The funding is a way for those who have less than perfect credit to enter into investing in real estate if that is what they want to do. You however must determine if this funding is right for your situation. Compared to traditional lending practices that require a certain credit score for approval and then a long wait time to receive the funds, hard money lenders do not have such strict requirements.
Another advantage of this type of loan is that there are fewer requirements to qualify as with a traditional loan. It is not based on your credit scores, but rather the asset of the property and home. You get the loan based on the value of the property you want to invest in and if you default on the loan the lender gets the property and can sell it for fair market value or the cost of the loan.
If you are an REI and are looking for quick funding then this is the source you should consider. There is risk with any business venture but there is less red tape and hoops to jump through for the funds you need. Traditional banks make you wait approximately 30 days before your funding comes through which is not the ideal situation for a short sale or foreclosure.
For some investors this type of funding may not be right for them. You must weigh all the variables and decide if it is the right way to go. If you have poor credit and can't get a traditional loan then you may need to consider this source instead.
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.
These lenders are ideal for a short sale or house flipping, and you get the funding fairly quickly. This funding allows you to receive the value of the property plus rehab money to fix it up once you obtain it. After you rehab the property and fix it up you can then sell the home for a profit and pay off the lender and have money left over.
The funding is a way for those who have less than perfect credit to enter into investing in real estate if that is what they want to do. You however must determine if this funding is right for your situation. Compared to traditional lending practices that require a certain credit score for approval and then a long wait time to receive the funds, hard money lenders do not have such strict requirements.
Another advantage of this type of loan is that there are fewer requirements to qualify as with a traditional loan. It is not based on your credit scores, but rather the asset of the property and home. You get the loan based on the value of the property you want to invest in and if you default on the loan the lender gets the property and can sell it for fair market value or the cost of the loan.
If you are an REI and are looking for quick funding then this is the source you should consider. There is risk with any business venture but there is less red tape and hoops to jump through for the funds you need. Traditional banks make you wait approximately 30 days before your funding comes through which is not the ideal situation for a short sale or foreclosure.
For some investors this type of funding may not be right for them. You must weigh all the variables and decide if it is the right way to go. If you have poor credit and can't get a traditional loan then you may need to consider this source instead.
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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