An incredible bargain on a fix and flip opportunity in an excellent neighborhood all of a sudden shows up — seems so good that it's hard to believe. Professional house flippers, like the young couple on Flip or Flop, HGTV's reality flipping series, are capable of bringing in a profit of $40-$50k as an average on more than one occasion. Without question, their rehabbing experience, knowledge of hard money loans, familiarity with the market, and auction talents have been large factors to their results. Still, your rehab and remodeling skills aren't that bad either — besides, you have already located an ideal building contractor to handle this job.

But financing is often a different question altogether. A traditional lending institution, like for example a bank, takes at a minimum one to two months to authorize the loan and provide the monies. Because most sellers wish to have a fast closing, you might need to begin seeking out other funding alternatives.

Furthermore, for those who have an unfavorable credit score or don't receive a routine source of income, it may be harder for you to be eligible for bank financing, considering the tougher loan criteria banks have issued as of late. So will a shortage of funding stop you from sticking with your dream? Absolutely not, given that you always have the Washington hard money loan alternative.

If you opt for a hard money home loan in Washington, you have access to what's possibly most important to real estate negotiations across the country — a very fast closing of around fourteen days. Aside from that, financing is made up to 70% loan-to-value of the "as is" valuation, as determined by a professional appraiser. With rates starting around 10%, hard money real estate loans might seem, initially, to be more expensive in comparison with conventional bank loans. But when you appreciate that these loans are not long-term home loans, the rate can be misleading. As it pertains to short-term loans of one or two years or less, you should think of them the same as you would for any other expenditure for your project. When you have resold the property and have made a positive financial gain, you're able to recoup this expense from the home — just like recovering the cost of brand-new appliances for the kitchen that you installed.

In addition, even a person with weak credit can still qualify for a hard money mortgage. As an alternative for focusing strictly on the person's credit score or income, Washington hard money lenders, who may be a privately owned company or an individual person, say yes to a loan as a result of examining the property value, ease of marketability, where it is located, and the possibility of getting back their money in the event of foreclosure. Additional criteria that impact a customer's acceptance for a hard money real estate loan include what amount of money he can put towards a down payment, his former experience as a real estate investor, and price of similar, just recently sold properties in the vicinity.

So any time you run into a very good and worthwhile investment opportunity, be assured you'll have a hard money lender in Washington, equipped to lend you the cash you'll need. Enter your info into the form or give us a call and let's discuss the property or properties you have in mind.