Hard Money Loans in Afton
Suppose you've come across this excellent deal on a fix and flip property located in an ideal neighborhood, and you are either a skilled real estate investor or a first-timer who really wants to try out flipping homes. Expert home flippers, such as the young couple on Flip or Flop, HGTV's reality flipping show, are capable of earning a gain of forty to fifty grand as an average on multiple occassions. And indeed, they are helped in a big way via their professional experience, auction abilities and knowledge of hard money loans. That said, you have also been brushing up your rehab and remodeling knowledge, have a very good general contractor ready to go and are certain that you're capable of doing a stellar job for this property.
But how can you find the necessary financing for home flipping? When you apply for an ordinary bank loan, you will need to wait roughly 4-8 weeks up until the mortgage is authorized and the funds are available. Since the majority of sellers wish to have a fast closing, it may be best to begin looking for other funding alternatives.
On top of this, banks have been tightening their lending requirements as of late, rendering it more challenging for a person to get a typical loan if their credit situation is not flawless or he doesn't have a regular salaried job. So does that leave you with no other option, but to abandon your ambition to venture into home flipping? Absolutely not, because you always have the Afton hard money loan alternative.
A hard money home loan in Afton offers what's viewed as vital to most real estate deals — a quick closing of just a couple of weeks and at many times less. What's more, the LTV value can reach up to 70% of the property's valuation, as estimated by a credentialed appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, could be seen as more expensive than bank loans. But the time frames of these loans are relatively shorter, making the interest rate much less significant. As it pertains to short-term loans of a handful of years or less, you should look at them just like you would other expenses for your project. When you have turned the house and have made a successful financial gain, you can get back this expense from the house — much like recovering the money spent on the brand-new home appliances that you have installed.
In addition, even a person with weak credit can still qualify for a hard money mortgage. The person's credit score is not the lone determining factor for Afton hard money lenders — they also consider the house, its market value, its location, and its ability to earn back their financial commitment if everything does not work out as intended. Several other factors that impact a customer's acceptance for a hard money real estate loan can include how much money he is in a position to put into a down payment, his past experience as a real estate investor, and selling price of comparative, fairly recently sold properties in the area.
Locating a hard money lender in Afton to cover expenses for your renovation project is not very hard, assuming that the opportunity that lies before you is promising and has a strong potential for returns. Submit the contact form or give us a call and let's talk about the project you have in mind.
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