Hard Money Loans in Almont
A fabulous buy on a fix and flip opportunity located in a good area of the city shows up out of the blue — seems so good that it's hard to believe. You've heard that veteran property flippers, similar to the married couple on HGTV's Flip or Flop, enjoy a remarkable average profit margin of around $40,000 – $50,000. Of course, you also realize that their successes can be credited to the simple fact that they are industry experts, are knowledgeable in hard money loans, they know the marketplace quite well and in addition, they know how to work an auction for getting a reasonable price. With that being said, you have recently been brushing up your rehab and renovation skills, have got a general contractor ready for the project and are positive that you can do an impressive job on this property.
But how do you find the needed funding for flipping? If you meet with a regular lender, much like a bank for a mortgage loan, it's in all likelihood going to take no less than 4-8 weeks for the approval to be completed and the money to be accessible. With the sellers seeking a fast closing, that does not appear like a good option to you whatsoever.
With banks introducing harder loan standards in the past several years, it is harder for a self-employed individual to find a mortgage loan, particularly if his credit score is not flawless. So should you give up and forego your ambition to get into the real estate market? Certainly not, because you also have the Almont hard money loan option.
A hard money home loan in Almont provides what is considered vital to most real estate deals — a very fast closing of just a couple of weeks and oftentimes even less. And additionally, financing can be done for up to 70% loan-to-value of the as-is house value, as determined by a licensed appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, appear to be more expensive than bank lending products. But the term lengths for these loans tend to be quite shorter, making the interest rate less significant. Short-term loans of several months to a few years are best looked at as cost of capital, the same as any other expenditure associated with a project. When you have resold the property or home and have made a successful return, you'll be able to reclaim this expense from the home — similar to recovering the cost of brand-new home appliances that you put in.
Also, it's simple to qualify for a hard money mortgage, even in the event your credit situation is not that impressive. The customer's credit score will not be the lone deciding factor for Almont hard money lenders — additionally, they look at the house, its market value, where it is located, and its capability to bring back their investment if things do not go as intended. Several other factors that have an impact on a person's eligibility for a hard money real estate loan can include the amount he is able to put into a down payment, his past experience being a real estate investor, and price range of similar, recently sold residences in the area.
Locating a hard money lender in Almont to fund your fix and flip endeavor is not hard, so long as the opportunity in front of you is promising and boasts a strong prospect for returns. Complete the form on this page or call us to discuss your property.
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