Hard Money Loans in Anderson
Imagine you've run across this really great deal on a fix and flip property located in a great neighborhood, and you happen to be either a seasoned real estate investor or a first-timer who is looking to try his hand at flipping. You've probably heard that competent property flippers, similar to the husband and wife on HGTV's Flip or Flop, have an impressive average profit of around $40,000 – $50,000. Without question, their rehabbing experience, understanding of hard money loans, expertise in their housing market, and auction skills have played a big role in their success. On the other hand, you are certain that your superb rehab and renovation skills will assist you to do an outstanding job on the house — in addition, you have already arranged to have one of the finest general contractors in town to take on this project.
But where can you find the necessary capital for flipping? Should you apply for a traditional loan via a bank, you will wind up waiting around approximately one to two months until the financing is authorized and the funds are accessible. Since the majority of sellers would rather have a fast closing, you might need to start looking for additional financing alternatives.
With banks bringing in harder loan criteria in recent years, it is now harder for a self-employed person to obtain a mortgage loan, especially when his credit circumstances are not optimal. So does this leave you with no other option, but to abandon your ambition to venture into home renovating? Certainly not, because you always have the Anderson hard money loan option.
A hard money home loan in Anderson provides what's considered crucial to most real estate sales — a very fast closing of just a couple of weeks and sometimes less. Plus, the LTV value can range up to 70% of the property value, as evaluated by a competent appraiser. A number of people consider hard money real estate loans to be more expensive than standard loans, because the lending rates for these loans usually start off at 10%. But when you appreciate that these loans are not long-term home loans, the rate of interest can be misleading. The price tag on such short-term loans ought to be evaluated much like any other expense that you will encounter during the project. Right after you fix up and sell the house, recovering this expense is just like recouping the one for new kitchen appliances you put in the house.
Furthermore, even individuals with weak credit will be able to be eligible for a hard money mortgage. The borrower's credit score is not the lone deciding factor for Anderson hard money lenders — additionally, they look at the house, what is it valued at, its location, and its capacity to return their financial commitment if everything does not go as intended. Adding to this, if the individual can demonstrate past experience in comparable real estate endeavors, can put down cash for a down payment, and the value of similar homes in the vicinity works in his favor, he will have an excellent shot of being approved to obtain a hard money real estate loan.
So should you run into an outstanding and worthwhile investment opportunity, feel comfortable knowing you will have a hard money lender in Anderson, ready to lend you the money you need. Fill out the form on this page or give us a call to discuss the project you have in mind.
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