Real estate investing is more profitable than ever. Imagine buying a property for half the price it was 10 months ago. Problem is finding the money to close the properties. Hard money loans are a way for investors to close real estate deals. A hard money loan is one that is based on the property's after-repair value.
The borrower's creditworthiness is not considered when determining the loan amount. You may be able to get a real property deal done without spending any money if the deal is satisfactory. If you're working with a bank-owned property or a short sale, you will need to present a proof of funds letter. You can also get in touch with a trusted Seattle hard money lender to get hard money loans.
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If the bank agrees to the property's price, proof of funds will show that you are able to close on it. To facilitate negotiations, hard money lenders can provide proof of funds letters. These rates are not the lowest available rates for real estate purchase. You will need to pay 5 points upfront for a typical hard money loan and then repay the money borrowed at a 15% rate.
You pay 5% on the loan amount at the time that you take it out. Hard money loans are more sensible because there is not enough credit to buy real estate today. Yes, both the rates and points are high. It is worthwhile to spend the money if you intend to make money from the deal.