Hard Money Loans in Ashville
An outstanding buy on a fix and flip opportunity in a good neighborhood all of a sudden shows up — seems so good that it is difficult to believe. A majority of people know that capable professional flippers, along the lines of Tarek and Christina El Moussa who do HGTV's reality flipping series, Fix or Flop, are able to earn a typical profit of $40,000 to $50,000 on their flips. And sure, they are aided in a major way by their professional knowledge, auction expertise and familiarity with hard money loans. Still, your rehab and renovation skills aren't that bad either — besides, you have already located a good licensed contractor to tackle this home.
But how can you obtain the needed financing for home flipping? For those who apply for a regular bank loan, you will wind up waiting somewhere around 1-2 months until the mortgage is approved and your funding is readily available. Because most sellers give preference to a fast closing, it may be advisable to start seeking out some other financing alternatives.
As well as this, should you have a less-than-perfect credit score or do not receive a regular source of income, it is usually more difficult to qualify for a bank loan, considering the more stringent loan guidelines banks have introduced in recent times. So does that leave you with no other option, but to abandon your dream to venture into flipping? Most certainly not, because you also have the Ashville hard money loan alternative.
If you opt for a hard money home loan in Ashville, you'll get what is probably most vital to real estate transactions across the country — a quick closing of roughly a couple weeks. Further, loan amounts are made up to 70% loan-to-value of the as-is house value, as deemed by a licensed appraiser. At first glance, hard money real estate loans, with starting interest rates of 10%, appear to be more costly than bank loans. But in reality, the lending rate isn't as pertinent for these loans, since they aren't long-term loans. The price of such short-term loans ought to be viewed on par with any other expenditure that you will encounter in the course of the project. Once you've turned the home and have made a good financial gain, you can recoup this expense from the property — the same as recovering the money necessary for the brand-new home appliances that you have installed.
Aside from that, hard money mortgages are not hard to qualify for, regardless if you have a low credit score. As an alternative for focusing primarily on the person's credit score or wages, Ashville hard money lenders, who can be a privately owned company or an individual person, authorize a loan after assessing the property value, its marketability, where it is located, and the odds of recovering their capital in case of foreclosure. The amount that a person can put down beforehand towards the home, his past real estate experience, and selling price of comparable properties in the vicinity are other factors that go into analyzing a person's suitability for a hard money real estate loan.
If you happen to have stumbled upon a really good fixer-upper with a high prospect of returns, you have also found yourself a hard money lender in Ashville that is willing to fund your flipping project. Fill out the form or call us and let's discuss your property.
A loan specialist will be in touch shortly