Hard Money Loans in Ashley
There is this phenomenal opportunity to rehab and flip this wonderful old home in a good part of town and it looks like the one you have been expecting for quite some time. Many people know that expert professional flippers, like Tarek and Christina El Moussa who do HGTV's reality flipping show, Fix or Flop, can readily generate a typical profit margin of $40,000 to $50,000 on their flips. Undoubtedly, you also know that their success can be credited to the fact that they're professionals, are proficient in hard money loans, they understand the market quite well and they also are good at working an auction to purchase their properties at a good price. However, you are certain that your impressive rehab and renovation skills will help you do a great job for this house — what's more, you already have arranged to have one of the premier contractors in the business to work on this project.
But funding is a different question entirely. A typical lender, for instance a bank, takes at the very least 1-2 months to consent to the financing and provide the cash. With the sellers wanting a fast closing, that doesn't appear to be a good idea to you whatsoever.
On top of this, banks have already been tightening up their lending standards in recent years, rendering it more difficult for someone to get a conventional loan if their credit circumstances are not perfect or he is lacking a regular salaried occupation. So does this mean you have no option, but to drop your aspiration to venture into home renovating? Absolutely not, because you always have the Ashley hard money loan alternative.
Should you get a hard money home loan in Ashley, you're going to get what is probably most essential to real estate negotiations throughout the country — a very fast closing of approximately 2 weeks. Also, hard money lenders can do lending up to 70% LTV of the property value, as calculated by a professional third-party appraiser. With the lending rates starting off at about 10%, hard money real estate loans may look, initially, to be more pricey when compared with conventional bank lending products. But in reality, the interest rate is not as pertinent for these loans, because they are not long-term financing. Short-term loans of a couple of months to a handful of years are best approached in terms of cost of capital, the same as any other expense involved with a project. After you renovate and sell the home, recouping this expense is the same as recovering the money you spent for stainless steel appliances you installed in the house.
Furthermore, even an individual with weak credit can still be eligible for a hard money mortgage. Ashley hard money lenders don't approve a loan exclusively according to the applicant's credit score — rather they also look at the home, its location and value, and the property's ability to pay back the financing on its own. The total amount that an applicant can put down beforehand towards the home, how much experience he has in real estate investing, and price range of equivalent homes in the same area are various other details that go into ascertaining an applicant's eligibility for a hard money real estate loan.
If you happen to have found a wonderful home to flip with a significant potential for returns, you have also found yourself a hard money lender in Ashley who's happy to fund your rehab ventures. Complete the form on this page or get in touch with us via phone to talk about your project.
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