Hard Money Loans in Albion
Suppose that you've run across this truly good bargain for a fix and flip property you found in an ideal location, and you are either a seasoned real estate investor or a first-timer who hopes to try out flipping homes. Expert home flippers, like the young married couple on Flip or Flop, HGTV's reality flipping program, are capable of hauling in a profit of $40-$50k on a regular basis. No need to explain that their past experiences rehabbing, knowledge of hard money loans, expertise in their housing market, and auction talents have been major factors to their successes. Having said that, you've also been developing your rehab and renovation skills, have a building contractor lined up and are certain that you're capable of doing a great job on this property.
But how do you obtain the necessary financing for home flipping? A conventional lender, say for example a bank, takes at least one to two months to consent to the financing and provide the monies. Thus if you are hoping for a fast closing, you have to recognize that this could cost you weeks, making you lose out on the opportunity.
With banks bringing in more challenging loan requirements in recent years, it is now more difficult for a self-employed individual to get a mortgage loan, especially if his credit circumstances are not flawless. So should you admit defeat and forego your aspiration to venture into the real estate market? Not at all, particularly when Albion hard money loans enable you to realize great things in the real estate market.
A hard money home loan in Albion provides what's viewed as essential to most real estate transactions — a fast closing of just a few weeks and more often than not less. Besides that, hard money lenders are able to do funding up to 70% LTV of the property's valuation, as estimated by a licensed third-party evaluation. Some people believe hard money real estate loans to be higher priced than regular loans, because the interest rates for such loans normally start off at 10%. But usually, the rate of interest isn't as useful a measure for these loans, since they are not long-term financing. As it pertains to short-term loans of a handful of years or even less, you should consider them much like you would other expenditures for your project. When you have sold the property or home and have made a successful profit, you can reclaim this expense from the house — just like recovering the money spent on the brand-new kitchen appliances that you've installed.
Apart from this, hard money mortgages are easy qualifying, whether or not you have got poor credit. The borrower's credit score will not be the lone determining factor for Albion hard money lenders — they also consider the home, what is it valued at, where it is located, and its potential to return their investment if things should not go as intended. Adding to this, if the person have proven experience in comparable real estate ventures, can place down cash towards the down payment, and the value of comparable houses in the area works to his benefit, he has got a very good chance of being eligible to obtain a hard money real estate loan.
If you happen to have stumbled on an excellent real estate opportunity with a significant potential for returns, you've also stumbled upon a hard money lender in Albion who's prepared to provide financing for your fix and flip project. Fill out the contact form on this page or call us to talk about your property.
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