Hard Money Loans in Akron
There's this outstanding opportunity to fix and flip this wonderful outdated house in a good part of town and it looks a lot like the deal you've been wanting for quite some time. You've probably heard that professional property flippers, such as the couple on HGTV's Flip or Flop, have an impressive average profit of around $40,000 – $50,000. Naturally, you also recognize that their results can be attributed to the fact that they're professionals, are well versed in hard money loans, they understand the market quite well and furthermore, they know how to work an auction for getting an appropriate deal. Still, your rehab and remodeling skills aren't that bad either — besides, you've already identified an ideal general contractor to take on this job.
But where can real estate investors get funds? A traditional lending institution, say for example a bank, takes a minimum of one to two months to approve the loan and deliver the monies. So if you're hoping for a fast closing, you must realize that this could set you back by a couple weeks, making you lose out on the sale.
As well as this, for those who have an unfavorable credit rating or do not receive a regular income source, it can be more challenging for you to obtain a bank loan, seeing the stricter loan criteria banks have issued in recent times. So should you stop trying and forego your ambition to venture off into the real estate market? Not at all, particularly while Akron hard money loans enable you to achieve great things in real estate.
If you decide to get a hard money home loan in Akron, you have access to what's probably most essential to real estate negotiations across the country — a very fast closing of about two weeks. Plus, the LTV value can reach up to 70% of the home value, as determined by a credentialed appraiser. Some people regard hard money real estate loans to be more pricey than customary financing, since the interest rates for these loans usually start at 10%. But when you appreciate that these are not long-term loans, the interest rate tends to be misleading. The price tag on such short-term loans ought to be evaluated much like every other expense that you will have to meet for the project. Once you've turned the property or home and have made a successful profit, you'll be able to recoup this expense from the house — the same as recovering the money spent on the brand-new home appliances that you've put in.
Furthermore, even a person with poor credit can still qualify for a hard money mortgage. As an alternative for focusing entirely on the borrower's credit score or source of income, Akron hard money lenders, who could be a privately owned company or an individual, authorize a loan after assessing the home value, its salability, where it is located, and the odds of recuperating their money should they have to foreclose the loan. Other factors that have an impact on an applicant's approval for a hard money real estate loan include how much money he is in a position to put towards a down payment, his prior experience being a real estate investor, and selling price of similar, just recently sold homes nearby.
So in case you have stumbled on a wonderful real estate opportunity with a significant probability of returns, you've also discovered a hard money lender in Akron who is happy to fund your fix and flip ventures. Fill out the form on this page or get in touch with us via phone and let's talk about the property or properties you have in mind.
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