Hard Money Loans in Anderson
There is this outstanding opportunity to fix and flip this nice outdated property in a fantastic area and it looks like the one you've been wanting for quite a while. You've probably heard that professional property flippers, such as the couple on HGTV's Flip or Flop, turn a remarkable average return of around forty to fifty thousand dollars. It goes without saying their rehabbing experience, knowledge of hard money loans, familiarity with the market, and auction talents have played a significant part in their results. Still, your rehab and remodeling knowledge isn't bad either — aside from that, you've already found a good general contractor to start this job.
But how can you get the needed funding for home flipping? Should you apply for a traditional bank loan, you will wind up waiting around somewhere around 1 to 2 months until the financing is authorized and your funding is readily available. Thus if you are wishing for a fast closing, it's important for you to be aware that this could cost you a couple of weeks, making you lose out on the home.
What's more, should you have a less-than-perfect credit rating or do not have a consistent income, it can be more challenging for you to be eligible for a a bank loan, seeing the tighter loan criteria banks have put in place recently. So should you stop trying and forego your desire to venture into real estate? By no means, due to the fact you could always use the Anderson hard money loan approach to pay for your home flipping project.
A hard money home loan in Anderson promises what is probably most important to real estate investors — a quick closing in as little as 14 days. Besides that, hard money lenders are able to do lending up to 70% LTV of the property or home's valuation, as estimated by a licensed third-party evaluation. On the surface, hard money real estate loans, with starting interest rates of 10%, seem to be higher priced than bank lending products. But the term lengths for these loans tend to be relatively shorter, which means the rate is less important. When it comes to short-term loans of one or two years or less, you should consider them identical to any kind of other expense for your project. After you rehab and unload the home, recuperating this expense is no different than recovering the cost of the new kitchen appliances you put in the home.
Moreover, even an individual with low credit can still qualify for a hard money mortgage. The borrower's credit score is not the primary determining factor for Anderson hard money lenders — they also look at the house, its market value, where it is located, and its capacity to earn back their financial commitment if things do not go as intended. Adding to that, if the borrower can demonstrate past experience in comparable real estate ventures, can place down money for a down payment, and the cost of similar houses in the vicinity works to his benefit, he stands an excellent shot of being eligible for a hard money real estate loan.
So any time you run into a good and lucrative flipping opportunity, feel comfortable knowing you will have a hard money lender in Anderson, prepared to loan you the cash you'll need. Enter your info into the form or get in touch with us via phone to talk about the property you have in mind.
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