Hard Money Loans in Ames
You discovered this phenomenal opportunity to fix and flip this nice out of date house in a very good location and it looks a lot like the deal you've been expecting for quite a while. Professional home flippers, like the young couple on Flip or Flop, HGTV's reality flipping show, are capable of bringing in a profit of forty to fifty grand on average. Naturally, you also recognize that their great results are due to the fact that they're industry experts, are knowledgeable in hard money loans, they know the market quite well and furthermore, they are good at working an auction for getting a reasonable price. Still, your rehab and remodeling skills aren't that bad either — aside from that, you have already located a good general contractor to tackle this job.
But financing is usually a separate question entirely. Should you get in touch with a standard lender, like a bank for funding, it can take, as a minimum, 30-60 days for your acceptance to be completed and the funds to be sent out. So if you will be hoping for a fast closing, it is important you understand that this will cost you a few weeks, causing you to miss out on the home.
With banks introducing tougher loan standards in the past several years, it has become tougher for a self-employed individual to find a mortgage loan, especially if his credit rating is not flawless. So will inadequate funding prevent you from following your aspirations? Not at all, especially when Ames hard money loans enable you to achieve great things in the real estate world.
A hard money home loan in Ames can provide what is viewed as imperative to most real estate deals — a fast closing of just a 2-3 weeks and more often than not even less. Further, loan amounts can be made up to 70% loan-to-value of the as-is home's valuation, as determined by a qualified appraiser. Some individuals consider hard money real estate loans to be more pricey than ordinary loans, since the interest rates for these loans normally start off at 10%. But the time frames of these loans are quite short, which means the interest rate is less important. The price of such short-term loans ought to be looked at much like any other expense that you will have to meet pertaining to the project. Right after you renovate and sell off the home, recouping this expense is just like recuperating the expense for new kitchen appliances you put in the property.
In addition, even individuals with poor credit can still be eligible for a hard money mortgage. Ames hard money lenders don't approve a loan strictly judging by the customer's credit score — instead they also evaluate the property or home, its valuation and location, and the home's capability to pay back the financing independent of the borrower. Additional criteria that affect a person's approval for a hard money real estate loan can include how much he can put towards a down payment, his prior experience being a real estate investor, and price range of similar, fairly recently sold homes nearby.
So in case you have found an excellent fixer-upper with a significant prospect of returns, you have also discovered a hard money lender in Ames that is ready to provide funding for your fix and flip project. Enter your info into the contact form or call us to talk about the property or properties you have in mind.
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