Hard Money Loans in Auburn
Suppose you've encountered this excellent deal for a fix and flip property in a terrific location, and you are either a skilled real estate investor or a newbie who really wants to try his hand at flipping. Most folks know that capable professional flippers, like Tarek and Christina El Moussa who star in HGTV's reality home flipping program, Fix or Flop, can readily generate an average profit margin of forty to fifty thousand dollars in their rehab business. It's fair to say their rehabbing experience, understanding of hard money loans, familiarity with the market, and auction talents have played a significant role in their success. Still, your rehab and remodeling knowledge isn't that bad either — besides, you have already found a good contractor to take on the job.
But where precisely can real estate investors obtain capital? A typical lender, for instance a bank, takes no less than 1-2 months to consent to the financing and provide the cash. Given that sellers would rather have a fast closing, it may be best to begin searching for some other financing options.
As well as this, in case you have an unfavorable credit rating or do not have a consistent source of income, it may be more challenging for you to obtain a bank loan, seeing the stricter loan guidelines banks have put in place as of late. So does this mean you have no option, but to drop your dream of getting into home flipping? Definitely not, given that you also have the Auburn hard money loan option.
A hard money home loan in Auburn promises what is probably most desired by real estate investors — a very fast closing in as few as 14 days. Plus, the LTV value can go up to 70% of the home's valuation, as determined by a certified appraiser. With the rates starting around 10%, hard money real estate loans might appear, initially, to be more costly compared to traditional bank financing. But in reality, the rate of interest isn't as relevant for these loans, since they will never be long-term financing. The price of such short-term loans ought to be looked at much like every other expense that you will have to meet pertaining to the project. And once you've turned the property, recouping this expense is comparable to recovering the expense for all the kitchen and bath upgrades you did.
Besides, hard money mortgages are easy qualifying, regardless if you posses bad credit. Auburn hard money lenders do not approve a loan strictly based on the person's credit score — instead they will look at the home, its valuation and location, and the home's capability to pay back the financing on its own. On top of this, if the individual have proven experience in comparable real estate ventures, can place down cash for the down payment, and the value of similar homes in the area works to his benefit, he has an excellent shot of qualifying to obtain a hard money real estate loan.
If you happen to have stumbled on a really good real estate opportunity with a huge chance of returns, you have also discovered a hard money lender in Auburn that is willing to provide funding for your rehab venture. Complete the form on this page or call us and let's talk about the project you have in mind.
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