Hard Money Loans in Attica
Suppose that you've run into this truly good bargain on a fix and flip property located in a terrific location, and you're either a seasoned real estate investor or a first-timer who really wants to try his hand at flipping. Professional property flippers, like the young couple on Flip or Flop, HGTV's reality flipping series, are capable of bringing in a gain of $40-$50k on the majority of projects. And sure, they are helped in a major way via their professional know-how, auction abilities and knowledge of hard money loans. Having said that, you have likewise been developing your rehab and renovation knowledge, have got a licensed contractor arranged and are certain that you will be able to do an impressive job for this property.
But financing is a separate issue entirely. If you approach a common lending institution, such as a bank for a mortgage loan, it is likely going to take no less than 4-8 weeks for the approval to be completed and your money to be sent out. Considering that all the home owners are looking for a fast closing, that doesn't appear like a great idea to you at all.
On top of this, banks have been tightening their lending standards in recent times, rendering it more hard for someone to get a typical loan if their credit score is not perfect or he doesn't have a regular salaried job. So does this leave you with no option, but to drop your aspiration of venturing into the fix and flip business? By no means, on the grounds that you can always use the Attica hard money loan approach to pay for your flipping project.
A hard money home loan in Attica provides what is considered vital to most real estate transactions — a fast closing of only a 2-3 weeks and at many times even less. Aside from that, loan amounts are made up to 70% loan-to-value of the "as is" property value, as deemed by a qualified appraiser. With the rates starting out at about 10%, hard money real estate loans might appear, at first glance, to be more pricey compared to conventional bank financing. But the term lengths for these loans tend to be relatively short, which makes the interest rate much less important. Short-term loans of a couple of months to a handful of years are best understood in terms of cost of capital, similar to any other expense associated with a project. And once you have finally sold the home, recouping this expense is identical to recuperating the expense for the bathroom or other upgrades you performed.
What's more, it is easy to obtain a hard money mortgage, regardless if your credit rating is not that impressive. Attica hard money lenders do not take on a loan solely on the basis of the applicant's credit score — instead they additionally assess the home, its valuation and location, and the property's capacity to pay back the financing without the help of the applicant. Several other factors that affect a person's approval for a hard money real estate loan can include how much he is able to put towards a down payment, his prior experience as a real estate investor, and price range of comparative, recently sold homes in the vicinity.
Finding a hard money lender in Attica to cover expenses for your fix and flip endeavor is not difficult, provided that the opportunity in front of you is promising and possesses a good potential for returns. Complete the form or get in touch with us via phone to talk about the project you have in mind.
A loan specialist will be in touch shortly