Real estate investors depend on the income from properties they buy to generate. Although a strong buyer's marketplace is a boon for investors, it takes a lot of financial knowledge to navigate real estate investments. Investors often don't have access to conventional financing such as FHA loans to buy residential homes.
Many investors instead turn to private money lenders, also known as hard cash lenders, to finance their purchases. Hard money loans are also known as equity-based or private money and are intended to help real estate buyers who are unable to use traditional financial products. You can click this link right here now to know more about hard money loan options available in Seattle.
Image Source: Google
Many times, banks and other lending institutions won’t finance real property purchases because the buyer doesn’t meet strict criteria regarding the type of property that is eligible for financing. Other times, people may not be able to obtain financing due to past foreclosures and credit problems.
Private financing is available to buyers and investors who are unable to qualify for traditional financing. It is important to know what products are available before you apply for these private loans. Fix-and-flip loans, true to their name, are for investors who wish to purchase properties and rehab them before selling them.
These properties are often not eligible for FHA financing as they require too much work. Both new and experienced investors can use fix-and-flip loans across the country. Many hard money loans that are designed for fix-and flip properties can be used to finance the purchase price as well as the cost of repairs.