Hard Money Loans in Apple Valley
Imagine you've stumbled upon this really great bargain on a fix and flip property you found in an ideal location, and you're either a seasoned real estate investor or a newbie who wants to try his hand at flipping. Most folks know that knowledgeable professional flippers, such as Tarek and Christina El Moussa who star in HGTV's reality home flipping series, Fix or Flop, can generate a typical profit margin of $40,000 to $50,000 on their flips. And indeed, they are aided in a major way via their professional experience, auction abilities and knowledge of hard money loans. However, you are assured that your first class rehab and remodeling skills will help you do a superb job for this home — furthermore, you've already arranged to have one of the finest contractors in town to take care of the project.
But where can real estate investors obtain capital? For those who apply for a normal bank loan, you will wind up waiting somewhere around 1-2 months up until the money is approved and the funds are available. Since most home owners would prefer a fast closing, you might need to begin seeking out other financing options.
Furthermore, should you have an unfavorable credit score or don't have a consistent income source, it is normally tougher to qualify for bank financing, considering the tougher loan requirements banks have introduced of late. So does this mean you have no option, but to abandon your aspiration to venture into the fix and flip business? Most certainly not, given that you also have the Apple Valley hard money loan option.
If you should put in an application for a hard money home loan in Apple Valley, you have access to what is possibly most essential to real estate transactions throughout the country — a very fast closing of approximately a couple weeks. Aside from that, loans can be done for up to 70% loan-to-value of the as-is valuation, as calculated by a qualified appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, seem to be more pricey than bank loans. But in reality, the lending rate isn't as useful a measure for these loans, given that they will never be long-term financing. The price of such short-term loans should be looked at on par with any other expense that you will have to meet for the project. After you remodel and unload the home, recovering this expense is no different than recovering the expense for stainless steel appliances you placed into the house.
Aside from that, hard money mortgages are not hard to qualify for, regardless if you posses bad credit. Instead of focusing exclusively on the person's credit score or net income, Apple Valley hard money lenders, who may be a privately owned company or an individual person, say yes to a loan as a result of examining the property value, its marketability, its location, and the likelihood of getting back their money should they have to foreclose the loan. On top of this, if the borrower have proven experience in equivalent real estate endeavors, can place down money for the down payment, and the value of similar homes in the vicinity works in his favor, he stands a very good chance of being approved to get a hard money real estate loan.
If you happen to have stumbled upon a really good fixer-upper with a huge chance of returns, you have also discovered a hard money lender in Apple Valley that is willing to fund your rehab projects. Enter your info into the contact form on this page or get in touch with us via phone and let's discuss your property.
A loan specialist will be in touch shortly