Hard Money Loans in Allegan
Imagine you've encountered this truly good bargain for a fix and flip property you found in an ideal location, and you happen to be either a seasoned real estate investor or a first-timer who is looking to try out flipping houses. Professional house flippers, much like the young couple on Flip or Flop, HGTV's reality flipping program, are able to earn a gain of $40-$50k on a consistent basis. It's fair to say their past experiences rehabbing, understanding of hard money loans, expertise in their housing market, and auction skills have been major factors to their successes. Nevertheless, you are convinced that your superb rehab and renovation skills will assist you to do a superb job for this home — what's more, you already have lined up one of the finest contractors in the business to take on this project.
But financing is often a separate question entirely. If you approach a common lending institution, such as a bank for financing, it's very likely going to take a minimum of thirty to sixty days for your acceptance to come through and the funds to be accessible. Given that sellers prefer a fast closing, you may want to start seeking out additional funding alternatives.
On top of this, banks have already been tightening up their lending criteria in recent times, rendering it more tough for someone to obtain a conventional loan if their credit situation is not perfect or he does not have a consistent salaried profession. So does that mean you have no option, but to give up your aspiration of venturing into flipping? Not at all, especially when Allegan hard money loans can help you accomplish many amazing things in real estate.
When you apply for a hard money home loan in Allegan, you will get what's perhaps most important to real estate offers across the country — a fast closing of roughly a couple weeks. Additionally, loans are made up to 70% loan-to-value of the "as is" house value, as deemed by a professional appraiser. At first glance, hard money real estate loans, with starting interest rates of 10%, seem to be more expensive than bank loans. But when you appreciate that these loans are not long-term mortgage loans, the rate of interest may be misleading. Short-term loans of a couple months to a few years are best understood as cost of capital, the same as all other expenditures related to a project. Once you have sold the property and have made a positive return, you're able to recoup this expense from the house — very much like recovering the money necessary for the brand-new kitchen appliances that you've installed.
Apart from this, hard money mortgages are easy qualifying, whether or not you have a bad credit rating. The applicant's credit score isn't the lone determining factor for Allegan hard money lenders — additionally, they analyze the piece of real estate, its market value, its location, and its capacity to return their investment if things should not work out as intended. How much a person can put down in advance for the home, his real estate experience, and price range of comparative homes in the vicinity are other factors that go into analyzing an individual's qualification for a hard money real estate loan.
So in the event you come across a really good and profitable investment opportunity, rest assured you will have a hard money lender in Allegan, equipped to lend you the money you need. Submit the form on this page or get in touch with us via phone to discuss the project you have in mind.
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