Hard Money Loans in Ashland
A remarkable bargain on a fix and flip opportunity located in an excellent area of the city shows up out of the blue — sounds too good to be true. Professional home flippers, like the young married couple on Flip or Flop, HGTV's reality flipping show, are able to earn a profit of forty to fifty grand for the majority of homes. And sure, they are aided in a big way by their professional experience, auction expertise and understanding of hard money loans. Still, your rehab and renovation skills aren't bad either — aside from that, you have already identified an ideal licensed contractor to take on the job.
But where do you get the needed financing for home flipping? In the event you opt for a traditional loan via a bank, you will wind up waiting around approximately 1 to 2 months before the loan is approved and your funds are ready. So if you're expecting a fast closing, you need to understand or know that this could set you back by a couple of weeks, making you miss out on the sale.
To add to it, banks have been tightening their lending standards in recent times, which makes it difficult for someone to get an ordinary loan if their credit circumstances are not flawless or he is lacking a regular salaried occupation. So do you have to give up and forego your dream to get into real estate? Certainly not, given that you always have the Ashland hard money loan option.
A hard money home loan in Ashland provides you with what's probably most sought after by real estate investors — a quick closing time of as little as 14 days. Aside from that, financing is made up to 70% loan-to-value of the as-is value, as established by a licensed appraiser. With the rates starting near 10%, hard money real estate loans may look, at first, to be higher in price when compared with traditional bank financing. But in reality, the rate of interest is not as useful a measure for these loans, given that they aren't long-term loans. As it pertains to short-term loans of a handful of years or even less, you should think about them much like you would other expenses for the project. And once you've sold the home, recuperating this expense is identical to recovering the expense for all the bathroom or other updates you performed.
Besides, hard money mortgages are easy qualifying, regardless if you have below-average credit. The customer's credit score isn't the exclusive deciding factor for Ashland hard money lenders — additionally, they look at the piece of real estate, its market value, its location, and its capability to return their financial commitment if things do not go as intended. On top of that, if the applicant can demonstrate past experience in similar real estate projects, can place down cash towards the down payment, and the price of similar properties in the area works to his benefit, he has a really good likelihood of qualifying for a hard money real estate loan.
So in case you have stumbled upon a really great fixer-upper with a significant potential for returns, you've also discovered a hard money lender in Ashland that is prepared to finance your fix and flip ventures. Fill out the contact form on this page or get in touch with us via phone to discuss your property or properties.
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