Hard Money Loans in Arthur
Suppose you've come across this excellent deal on a fix and flip property located in an ideal neighborhood, and you happen to be either an experienced real estate investor or a newbie who is looking to try out flipping houses. You've probably heard that veteran home flippers, much like the husband and wife on HGTV's Flip or Flop, enjoy a remarkable average profit margin close to forty to fifty thousand dollars. And sure, they are aided in a major way via their professional know-how, auction abilities and familiarity with hard money loans. Having said that, you have also been cultivating your rehab and renovation knowledge, have got a licensed contractor ready for the project and are confident that you can do a stellar job for this house.
But financing can be a separate issue entirely. Should you apply for a conventional bank loan, you will have to wait around roughly 1-2 months up until the time the loan is authorized and your money is ready. Since most sellers prefer a fast closing, you might want to begin looking for other funding alternatives.
To add to it, banks have already been tightening up their lending standards in recent times, which makes it hard for a person to obtain a regular loan if their credit situation is not flawless or he does not possess a regular salaried job. So does that leave you with no option, but to drop your ambition of venturing into the fix and flip business? Not at all, particularly when Arthur hard money loans enable you to realize great things in the real estate market.
If you apply for a hard money home loan in Arthur, you have access to what's possibly most vital to real estate transactions across the country — a very fast closing of about 2 weeks. In addition, the LTV value can reach up to 70% of the property's valuation, as determined by a credentialed appraiser. With the rates starting near 10%, hard money real estate loans might seem, at first, to be higher priced compared to traditional bank lending products. But usually, the interest rate is not as pertinent for these loans, since they aren't long-term loans. The price tag on such short-term loans should be looked at much like any other expense that you would encounter in the course of the project. And once you've finally turned the property, recuperating this expense is comparable to recouping the expense for all the kitchen and bath updates you did.
What's more, it isn't difficult to qualify for a hard money mortgage, even when your credit rating is not that superb. The applicant's credit score is not the single deciding factor for Arthur hard money lenders — they also consider the house, how much it is worth, its location, and its ability to earn back their financial commitment if things do not go as planned. How much an applicant can put down in advance for the property, how much practical experience he has in real estate investments, and price range of equivalent homes in the same neighborhood are other details that go into determining a person's suitability for a hard money real estate loan.
So in case you have stumbled on an excellent real estate opportunity with a high probability of returns, you have also discovered a hard money lender in Arthur who's ready to provide funding for your rehab project. Fill out the contact form on this page or get in touch with us via phone to talk about the property you have in mind.
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