CONGRATS and info on Hard Money Loans
Hello and good weekend!
Congrats to Bailey on the closing of his fixer home! View this recently sold Single Family Detached home or see all our home sales.
This sale closed 5 business days after the contract was written, and actually, could have closed in 2. How?! Hard Money Loan. This is a great avenue for buyers who invest in fix-and-flip or just wholesale property purchases - any home that you only intend to keep for a short period of time.
How do they work? It varies by lender, but here's an example of one lender's plan:
*15% down payment
*NO QUALIFYING - they don't pull credit, ask for verification of funds or employment, etc - if you have the down payment, you can get the loan
*$600 lender fee
*There is NO pre-payment penalty - the loan can be paid off that same day, if a buyer was in line
*As short as a 2 day escrow period
*NO payments are due until the home is sold; at that time, the lendee repays the loan at 18% annual, based on a 360 day year. If the lendee keeps the loan open for in excess of 6 months, the interest rate goes up to 29%.
Obviously, this type of financing is for a small niche of real estate transactions, but it is a fabulous option for investors to minimize the time/paperwork/fees involved in a conventional financing scenario. Signing docs literally took 5 minutes, since there are no Underwriters or extensive disclosures.
We offer this info to give an example of how we can think outside of the box. We strive to stay as up-to-date as possible on all aspects of real estate and financing, rather than just sit and 'coast', relying on the standard protocol.
If you are considering buying or selling a home, doesn't it make sense to work with agents who constantly learn and add to their arsenals of knowledge?
Contact us for all your residential real estate needs at info@weareazrealestate.com.
Sharon Kotula, ABR
Adam Tarr, ePRO
Your Phoenix Area Real Estate Source
RE/MAX Excalibur
Scottsdale, AZ
480-483-3333
COMING SOON - "Save even more with an open escrow file"!