Hard Money Loans in Auburn Hills
You discovered this phenomenal possibility for rehabbing and flipping this nice outdated house in a very good location and it looks like the one you've been wanting for quite some time. Everyone knows that capable professional flippers, like Tarek and Christina El Moussa from HGTV's reality flipping program, Fix or Flop, are able to turn an average profit of forty to fifty thousand dollars on their flips. And sure, they are helped in a major way via their professional experience, auction abilities and familiarity with hard money loans. On the other hand, you are certain that your superb rehab and renovation skills will assist you to do a superb job for this property — furthermore, you have already lined up one of the most sought after general contractors in the area to handle the job.
But where can real estate investors find financing? When you get in touch with a common lending institution, such as a bank for funding, it's very likely going to take a minimum of 30-60 days for the acceptance to be completed and your funds to be distributed. Since most sellers favor a fast closing, you may have to start seeking out other financing alternatives.
What's more, for those who have a sub-optimal credit score or don't receive a conventional income source, it may be harder to be eligible for a a bank loan, seeing the more stringent loan requirements banks have put in place recently. So does this leave you with no option, but to drop your aspiration of getting into home flipping? Definitely not, given that you always have the Auburn Hills hard money loan alternative.
A hard money home loan in Auburn Hills gives you what's viewed as vital to most real estate transactions — a fast closing of just a 2-3 weeks and at times less. Also, hard money lenders are able to do lending up to 70% LTV of the home's valuation, as established by a professional third-party evaluator. On the surface, hard money real estate loans, with starting interest rates of 10%, could be seen as more expensive than bank lending options. But the time frames of these loans are quite shorter, which makes the rate far less significant. The cost of such short-term loans ought to be viewed much like any other expense that you would need to meet for the project. When you have sold the house and have made a good gain, you can recover this expense from the home — similar to recouping the money necessary for the brand-new kitchen appliances that you put in.
What's more, it isn't difficult to obtain a hard money mortgage, regardless of whether your credit score is not that extraordinary. Auburn Hills hard money lenders do not authorize a loan strictly according to the customer's credit score — rather they also assess the property, its location and value, and the home's capability to pay back the loan independent of the applicant. The total amount that a person can put down beforehand for the house, his past real estate experience, and price range of equivalent properties in the neighborhood are additional details that go into analyzing a borrower's eligibility for a hard money real estate loan.
So any time you run into a good and lucrative investment opportunity, feel comfortable knowing you will have a hard money lender in Auburn Hills, willing to lend you the funds you need. Submit the form or call us to talk about your property.
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