Hard Money Loans in Aiken
There is this phenomenal possibility for renovating and flipping this nice outdated property or home in a fantastic location and it looks like the one you've been eagerly waiting on for quite a while. You've heard that professional property flippers, much like the married couple on HGTV's Flip or Flop, have a remarkable average profit margin of around forty to fifty thousand dollars. It's fair to say their past experiences rehabbing, understanding of hard money loans, familiarity with the market, and auction skills have been major factors to their successes. Still, your rehab and renovation knowledge isn't that bad either — in any case, you've already found a suitable licensed contractor to start this job.
But where can you find the necessary funding for flipping? A typical lender, like for example a bank, takes no less than 1 to 2 months to consent to the loan and hand over the monies. With the sellers looking for a fast closing, that does not appear like a good idea to you at all.
With banks establishing tougher loan guidelines in recent times, it is now more challenging for a self-employed person to obtain a home loan, especially if his credit score is not optimal. So does this leave you with no option, but to give up your dream to venture into flipping? Most certainly not, seeing as you always have the Aiken hard money loan option.
A hard money home loan in Aiken provides what's considered crucial to many real estate sales — a fast closing of just a 2-3 weeks and at times less. Also, hard money lenders can approve loans up to 70% LTV of the property's valuation, as identified by a certified third-party appraiser. With the rates starting off near 10%, hard money real estate loans may appear, at first glance, to be higher in price in comparison with conventional bank financing. But the lengths of these loans tend to be comparatively short, making the interest rate far less significant. When it comes to short-term loans of several years or even less, you should consider them just like you would other expenses for your project. And as soon as you have sold the property, recouping this expense is comparable to recouping the expense for the kitchen and bath improvements you performed.
Aside from that, hard money mortgages are easy qualifying, even if you have very bad credit. As an alternative for focusing solely on the applicant's credit score or wages, Aiken hard money lenders, who can be a privately owned company or an individual, say yes to a loan as a result of assessing the home value, how easy it will be to market, where it is located, and the odds of recovering their money in case of foreclosure. Adding to this, if the individual have proven experience in similar real estate projects, can put down money for the down payment, and the cost of comparable houses in the neighborhood works to his benefit, he has got a really good shot of being approved to get a hard money real estate loan.
Locating a hard money lender in Aiken to cover expenses for your real estate project is not very challenging, assuming that the opportunity before you is promising and boasts the right prospect for returns. Enter your info into the form on this page or call us and let's discuss the project you have in mind.
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