Hard money lenders in Seattle offer an asset-based financing option that is funded by private investors.
Instead of relying on your credit history alone, they focus on the after-repair value (ARV) of the property that you are investing in. They are also willing to finance properties that conventional mortgage lenders tend to decline. Because of this, many real estate investors use this option as a backup.
Real estate remains to be a popular investment in the US, but starting out can be challenging because of the funds involved. If you are a real estate investor in this area who needs financing for a new venture, this article will teach you how to secure a hard money loan in Seattle.
Related: How to Find Hard Money Lenders for Real Estate
How to Find Hard Money Lenders in Seattle
Because you can get funding fast when you take out a hard money loan, more and more real estate investors are availing of this financing option. But first, you need to learn which hard money lenders in Seattle are the reputable ones. Here are the top three tips on finding them:
Explore your Real Estate Network
As you venture into the real estate industry, you start building your network of professionals and fellow investors. Real estate agents, lawyers, and brokers can help you find property deals and the best hard money loans. They also tend to have more extensive networks and are likely to have an established relationship with a lender.
When asking your network for referrals, you will have a better chance of finding a hard money lender that you can work with when you are open about your expectations. Tell your network:
- The amount of downpayment you can afford
- Your preferred loan duration
- When you intend to sell the property
- Who you will be working with or hiring
- How much of the work you will be able and willing to do yourself
When you ask your contacts if they know of any hard money lenders in Seattle, not only can they refer you to someone who is reliable. Having a mutual connection with your borrower can also help you more easily establish a relationship with them. Having a good relationship with your lender allows you to close deals and obtain funding at a faster rate when you need to.
Related: Creating a Real Estate Investment Network: Who Do You Need?
Attend Local Real Estate Events
By attending real estate events in your area, you are likely to meet a few hard money lenders in Seattle. They tend to go to these meetings in the hopes of networking with prospective borrowers like you. Note that in events like these, you will meet different types of lenders, so specify that you are looking for someone who specializes in hard money lending.
When you find an actual hard money lender, make sure that you leave a good impression and build a friendly rapport. This will help them remember you in a favorable way, so when the time comes for you to call on them to take out a loan, they will finance your investment quickly and on good terms.
In case you do not encounter any lender at these events, then feel free to approach those who are present and ask them for recommendations. Many of them may have financed their projects this way. Who knows, they might introduce you to one of the best mortgage brokers in Seattle.
Search Public Records
When searching for hard money lenders in Seattle, you would want to look for someone who is local to your area. A money lender who is familiar with the local market will have an easier time inspecting and confirming the property’s value. And if they find that meeting with you is a breeze because of your close proximity to each other, you can have an easier time establishing a good relationship and closing the deal.
If you want to work with a lender in your area, you could try going through the public records in your city to find local lenders. Seattle real estate investors can access these online by visiting the city’s government website. Once you are on the homepage, do the following:
- Scroll all the way down to the page’s footer section. Under “City-Wide Information”, select “Public Information Requests”.
- Scroll down the page until you see “Licenses” and select it to expand that section. There, you should see a table of the types of licenses that the city issues.
- On “Business” row, select “Find a Business database”. You will then be directed to a search form.
- On this search form, you can look up a business by:
- Its legal or trade name
- Its physical address
- Its commodity (NAICS Code)
- Its zip code/neighborhood
- In the dropdown menu under “Search by Commodity (NAICS Code), choose “Real Estate Credit”, and click “Search”. You will then find a list of businesses that are primarily engaged in lending funds with real estate as collateral.
Now that you have a list of real estate creditors, you can call them up to make your inquiry. By doing this, you can compare their loan terms and determine if they are responsive and easy to work with.
The Top Hard Money Lenders in Seattle
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Gelt Financial
Even though they are based in Florida, Gelt Financial is still considered to be one of the top hard money lenders in Seattle. They have been in the real estate crediting business since 1989 and have an A+ rating on the Better Business Bureau (BBB). Aside from hard money loans, they also offer non-bank commercial financing and investor mortgages.
You can take out a loan ranging from $100k to $10 million or more, leveraging up to 65% of the appraised value of your investment. Gelt Financial’s rates start from 9.99% and you will need to pay 3 points upfront. They accept loans for the purposes of purchasing a property, refinancing a property, renovating a property, and more.
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Intrust Funding
Intrust Funding is based in Bellevue, WA, which is why they are known as one of the most reputable hard money lenders in Seattle. They have been in business for over nine years and they also have an A+ rating on BBB. Their main promise is that they can release funding in 48 hours upon submission of your application.
Intrust Funding does not require appraisals or draw inspections. You only need to send them around 15 photos of your property and they will send you a construction draw. You can apply for a loan from them for off-market property acquisitions, rehabs, and more. However, they charge a higher interest rate of 12% and their loan fee starts at 2%.
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Global Capital Partners
Global Capital Partners (GCP) may be based in New York, but they still count as one of Seattle’s hard money lenders because they also fund properties in this city. Since they have not been in operation for as long as the first two, they currently only have a B+ rating on BBB. Regardless, they managed to create a great reputation among customers they have worked with.
GCP boasts a simple and quick loan application process. You can reach them by calling the phone number or sending an email to the contact details listed on their website. Sending a message via their website form will also get you a callback within 1 or 2 business days. Unlike Gelt Financial and Intrust Funding, however, GCP did not publish its loan terms on their website. But their recent deals involve properties ranging from $530k to $16.8m.
Related: What You Need to Know About Hard Money Lenders
Start Searching for Lucrative Investment Properties in Seattle
If you are a real estate investor who needs funding for a property in Washington, you can find hard money lenders in Seattle. Searching for someone reliable requires leveraging your real estate network, attending local real estate events, and searching your city’s public records. Before meeting with them, remember to prepare questions to ask hard money lenders before deciding on which one to go with.
Now that you know where you can get funding, it is time to find the best-performing investment property in Seattle. Using Mashvisor’s proprietary tools and expansive database, you can search for and analyze properties within your budget that will earn you the biggest profit.
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