Hard Money Loans in Akron
Suppose that you've stumbled upon this really great deal on a fix and flip property in an ideal neighborhood, and you're either an experienced real estate investor or a newbie who hopes to try out flipping homes. Professional house flippers, such as the young couple on Flip or Flop, HGTV's reality flipping series, are capable of generating a profit of $40-$50k on the majority of projects. And indeed, they are aided in a big way due to their professional knowledge, auction skills and knowledge of hard money loans. Still, your rehab and remodeling skills aren't bad either — aside from that, you've already found a suitable general contractor to start the project.
But where can real estate investors obtain financing? A typical lender, like for example a bank, takes at the very least one to two months to consent to the loan and hand over the money. Since the majority of sellers favor a fast closing, it may be advisable to begin seeking out other financing alternatives.
On top of this, banks have already been tightening their lending standards in recent times, making it tough for people to get a regular loan if their credit rating is not perfect or he does not have a consistent salaried job. So must you give up and abandon your aspiration to venture into real estate? Never, considering that you could always go the Akron hard money loan route to fund your home renovating project.
If you put in an application for a hard money home loan in Akron, you're going to get what's possibly most important to real estate negotiations throughout the country — a fast closing of roughly two weeks. And additionally, loans can be done for up to 70% loan-to-value of the as-is value, as determined by a professional appraiser. A number of people believe hard money real estate loans to be higher priced than regular loans, since the lending rates of such loans often start at 10%. But in reality, the interest rate is not as pertinent for these loans, since they are not long-term financing. The price of such short-term loans ought to be looked at on par with any other financial outlay that you will have to meet pertaining to the project. Once you have sold the home and have made a good gain, you'll be able to recoup this expense from the property — much like recouping the cost of brand-new appliances for the kitchen that you have put in.
In addition, even an individual with weak credit will be able to qualify for a hard money mortgage. As an alternative for focusing solely on the borrower's credit score or net income, Akron hard money lenders, who may be a privately owned company or an individual, authorize a loan as a result of examining the home value, its salability, its location, and the odds of getting back their money if they have to foreclose the loan. The amount that an individual can put upfront towards the property, how much experience he has in real estate investing, and price range of comparative homes in the area are various other factors that go into ascertaining an individual's suitability for a hard money real estate loan.
So should you run into a very good and profitable investment opportunity, relax knowing you will have a hard money lender in Akron, equipped to lend you the funds you need. Submit the form on this page or get in touch with us via phone and let's discuss the project you have in mind.
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