Hard Money Loans in Arvada
A remarkable deal on a fix and flip property located in an excellent subdivision all of a sudden shows up — sounds so good that it is hard to believe. Everyone knows that capable professional flippers, such as Tarek and Christina El Moussa who star in HGTV's reality home flipping show, Fix or Flop, are able to turn a typical profit margin of forty to fifty thousand dollars on their flips. It goes without saying their rehabbing experience, knowledge of hard money loans, familiarity with the housing market, and auction talents have been major factors to their results. Nevertheless, you're convinced that your first class rehab and renovation talents can help you do a great job on this project — furthermore, you already have arranged to have one of the best contractors in the area to take care of this project.
But money is usually a different issue altogether. For those who get in touch with a common lender, such as a bank for funding, it's more than likely going to take no less than thirty to sixty days for the acceptance to come through and your funds to be given out. Given that home owners would prefer a fast closing, you may have to begin seeking out additional financing options.
With banks bringing in tougher loan guidelines in the past several years, it is now much harder for a self-employed individual to find a home loan, especially when his credit circumstances are not perfect. So will a lack of funds stop you from sticking to your aspirations? Absolutely not, because you also have the Arvada hard money loan alternative.
A hard money home loan in Arvada offers you what's deemed essential to most real estate sales — a quick closing of just a 2-3 weeks and more often than not even less. Plus, the LTV value can go up to 70% of the property's valuation, as estimated by a credentialed appraiser. Some people consider hard money real estate loans to be more expensive than regular loans, since the interest rates for these loans usually start at 10%. But if you appreciate that these loans are not long-term mortgage loans, the rate may be misleading. The cost of such short-term loans should be viewed much like any other cost that you will encounter in the course of the project. Once you've turned the house and have made a successful gain, you can recoup this expense from the house — the same as recuperating the money necessary for the brand-new home appliances that you installed.
Additionally, it's easy to qualify for a hard money mortgage, even when your credit situation is not that superb. Arvada hard money lenders do not authorize a loan solely judging by the applicant's credit score — instead they will examine the home, its valuation and location, and the home's ability to pay back the financing by itself. Additional criteria that affect an individual's approval for a hard money real estate loan can include how much he is able to put into a down payment, his previous experience being a real estate investor, and price range of comparable, recently sold residences nearby.
So any time you come across a really good and worthwhile flipping opportunity, relax knowing you'll have a hard money lender in Arvada, equipped to loan you the capital you will need. Enter your info into the contact form or give us a call and let's talk about your property.
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