Hard Money Loans in Madison

Imagine you've encountered this really great bargain on a fix and flip property in an ideal location, and you're either an experienced real estate investor or a first-timer who is looking to try out flipping houses. Everybody knows that knowledgeable professional flippers, like Tarek and Christina El Moussa who do HGTV's reality home flipping program, Fix or Flop, can readily make a typical profit margin of $40,000 to $50,000 on their flips. Undoubtedly, you also understand that their great results can be attributed to the simple fact that they're professionals, are proficient in hard money loans, they know market trends really well and additionally, they know how to work a public auction to buy their properties at a reasonable deal. That said, you have recently been developing your rehab and remodeling skills, have a very good general contractor arranged and are positive that you will be able to do an impressive job for this property.

But capital is usually a separate problem entirely. If you approach a common lending institution, such as a bank for funding, it can take at least 30-60 days for the acceptance to be completed and the money to be given out. Since the majority of home owners favor a fast closing, you may want to begin looking for other financing alternatives.

Furthermore, in case you have a less-than-perfect credit rating or do not have a consistent source of income, it is usually tougher for you to qualify for a bank loan, with the tougher loan requirements banks have introduced as of late. So will a shortage of financing keep you from sticking to your dream? Absolutely not, given that you always have the Madison hard money loan alternative.

A hard money home loan in Madison promises what is possibly most desired by real estate investors — a very fast closing time of as few as two weeks. Additionally, loan amounts are made up to 70% loan-to-value of the as-is property value, as established by a professional appraiser. Some people consider hard money real estate loans to be more expensive than customary loans, considering lending rates for such loans ordinarily start off at 10%. But the time frames of these loans tend to be much shorter, making the interest rate less significant. Short-term loans of a couple of months to a handful of years are best understood in terms of cost of capital, similar to every other expenditure associated with a project. After you renovate and unload the property, recuperating this expense is the same as recouping the expense for home appliances you installed in the property.

Moreover, even individuals with weak credit can easily qualify for a hard money mortgage. Rather than focusing solely on the applicant's credit score or wages, Madison hard money lenders, who can be a privately owned company or an individual person, say yes to a loan after examining the property value, how easy it will be to market, where it is located, and the possibility of recuperating their money if they have to foreclose the loan. On top of this, if the applicant have proven experience in similar real estate ventures, can put down cash for the down payment, and the price of equivalent properties in the vicinity works to his benefit, he has a good likelihood of being eligible to get a hard money real estate loan.

So any time you run into a very good and worthwhile investment opportunity, relax knowing you'll have a hard money lender in Madison, equipped to loan you the funds you need. Enter your info into the form on this page or get in touch with us via phone and let's talk about the project you have in mind.

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Investment property loans only please, no primary residences at this time.