Here's a great way to get your rehab. deals closed on time. Private money!

Hi all: I hope you're enjoying your Thursday.

I recently heard a statistic that up to 48% of the transactions in our area (Seattle-Tacoma) are distressed property. Further, a lot of this property needs to be fixed up. Normally an FHA 203-k loan might work. The problem is closing time. With FHA 203-k loans typically taking at least 30 days to close, most banks get anxious.

You might be further ahead to consider private money. In fact, most banks would prefer this as the deal closes sooner and there is certainty it will close. The Legacy Group is unique in that we lend our own portfolio money to close distressed properties quickly.

Yes, private money is generally more expensive but it is interest free during the rehab. phase and it generally is replaced by a permanent loan within 90 days. Again, the bottom line is you get your deal closed. I had an inquiry from a realtor yesterday where the property her client wanted to buy needed some work. They wrote the offer as a 203-k loan but may switch to private money if the closing gets tight.

Feel free to contact me if you have any questions. Also, I welcome your thoughts here. What are you seeing in your market? Have a great 4th of July weekend!