Finance Your Real Estate Investment With a Washington Private Money Loan
Investing in real estate can offer long-term returns. Understanding financing options and knowing when and how to leverage equity to further investment goals is essential to success as an investor.
Hard money lenders offer a fast, no-hassle way for investors to get the financing they need when conventional lenders say no. Private money loans are primarily based on available equity, not credit or income. So a less-than-perfect credit score is not a problem.
We break down the basics of how a direct-funded private equity loan works.
How Does a Private Equity Loan Work?
In an equity loan, a borrower uses equity from their property as collateral. The property value determines the sum of money that may be borrowed. Equity loans are typically used for major expense and investment purposes. These short-term loans are ideal for projects like fix-and-flips, rental property acquisitions, and bridge loans.
Loan terms, guidelines, and closing costs vary between hard money lenders. At Gregory M. Russell, we loan up to 50% of a client’s property value. Borrowers who show sufficient equity and a reasonable plan to repay the loan are approved.
For example, if a property is worth $200,000, we loan $100,000 or half of its value. Loan costs and any mortgages or liens against the property are paid off first, and the borrower then receives a check for the balance. Our loans range from $25,000 to $400,000, and we approve loans only for business or investment purposes.
Property types include multifamily rentals, vacation rentals, business and restaurant properties, commercial real estate, and land loans.
As with any type of loan, risks associated with an equity loan include loss of property if you fail to make payments. The Loan-to-value (LTV) ratio determines approval and the maximum allowed loan amount.
You can get an idea of your property value and available equity by doing research using sites like Zillow.
Get Easy Equity-Based Financing With Our Washington Hard Money Loan Team
Private money lender Gregory M. Russell has over 30 years of experience working with investors throughout Washington State. Our lending team understands real estate and that the ability to quickly tap equity can provide a boost to your investment goals. Because hard money loans are based on available collateral, rather than rigid lending criteria, approval is streamlined. One phone call is all it takes to get your loan request underway and you can have a check in hand within two weeks. Call us at 1-888-477-0444 to learn more. We’re here to help!