Hard Money Loans in Muskegon

A remarkable buy on a fix and flip property located in a good neighborhood suddenly turns up — sounds so good that it is difficult to believe. A majority of people know that expert professional flippers, along the lines of Tarek and Christina El Moussa from HGTV's reality flipping show, Fix or Flop, are able to earn a typical profit margin of $40,000 to $50,000 in their rehab business. And without a doubt, they are helped in a major way by their professional knowledge, auction expertise and familiarity with hard money loans. Having said that, you have also been developing your rehab and renovation knowledge, have a licensed contractor lined up and are positive that you will be able to do a bang up job on this house.

But where do real estate investors find funds? When you get in touch with a regular lender, such as a bank for a mortgage loan, it's likely going to take, as a minimum, four to eight weeks for your acceptance to come through and your funds to be furnished. So if you will be expecting a fast closing, it's important for you to recognize that this could set you back by a few weeks, making you lose out on the sale.

With banks bringing in harder loan standards in the recent past, it's become more difficult for a self-employed person to obtain a mortgage loan, especially if his credit score is not perfect. So will inadequate funding keep you from sticking with your aspirations? Certainly not, due to the fact you could always go the Muskegon hard money loan route to finance your home renovating project.

A hard money home loan in Muskegon provides you with what is perhaps most crucial to real estate investors — a fast closing time of as few as a few weeks. Furthermore, hard money lenders will often consent to lending up to 70% LTV of the property value, as established by a qualified third-party evaluator. With the lending rates starting out near 10%, hard money real estate loans may appear, initially, to be more expensive compared to conventional bank loans. But if you consider these are not long-term home loans, the rate of interest can be misleading. Short-term loans of a couple of months to a few years are best approached as cost of capital, similar to all other expenses in connection with a project. And when you have finally turned the property or home, recouping this expense is identical to recovering the expense for the bathroom or other upgrades you did.

What's more, it isn't difficult to obtain a hard money mortgage, regardless if your credit rating is not that extraordinary. Muskegon hard money lenders do not take on a loan strictly on the basis of the customer's credit score — instead they additionally examine the property or home, where it is located and what it is worth, and the property's capability to pay back the loan on its own. How much a borrower can put down beforehand for the property, how much practical experience he has in real estate investing, and price range of comparative properties in the area are other factors that go into determining a borrower's qualification for a hard money real estate loan.

If you happen to have found a really good real estate opportunity with a significant chance of returns, you've also stumbled upon a hard money lender in Muskegon that's ready to provide financing for your fix and flip projects. Submit the contact form or give us a call and let's discuss the property or properties you have in mind.

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