Hard Money Loans in Auburn
An outstanding bargain on a fix and flip property in a good neighborhood shows up out of the blue — sounds so good that it is hard to believe. You may have heard that professional home flippers, much like the couple on HGTV's Flip or Flop, turn a remarkable average profit margin of around forty to fifty thousand dollars. And yes, they are helped in a big way via their professional experience, auction skills and knowledge of hard money loans. That said, you've recently been developing your rehab and renovation knowledge, have a general contractor ready for the project and are positive that you can do a great job on this home.
But money can be a separate problem altogether. When you approach a common lending institution, such as a bank for a mortgage loan, it's likely going to take, as a minimum, 30-60 days for the approval to be completed and the funds to be furnished. With the sellers seeking a fast closing, that doesn't seem like a great idea to you whatsoever.
As well as this, in case you have a less-than-perfect credit score or do not receive a consistent source of income, it is normally tougher to be eligible for a bank financing, with the tougher loan requirements banks have issued lately. So will inadequate funds prevent you from following your aspirations? By no means, on the grounds that you could always go the Auburn hard money loan route to pay for your flipping project.
A hard money home loan in Auburn offers you what's deemed crucial to many real estate transactions — a fast closing of only a 2-3 weeks and at times less. What's more, the LTV value can reach up to 70% of the home's valuation, as determined by a certified appraiser. At first, hard money real estate loans, with starting interest rates of 10%, could be seen as more expensive than bank lending products. But once you appreciate that these loans are not long-term loans, the rate can be misleading. Short-term loans of a couple months to a handful of years are best approached as cost of capital, similar to all other expenses in connection with a project. And when you've finally sold the home, recovering this expense is comparable to recovering the expense for the kitchen and bath upgrades you performed.
Furthermore, even a person with bad credit will be able to qualify for a hard money mortgage. The customer's credit score will not be the primary determining factor for Auburn hard money lenders — they also consider the property, how much it is worth, its location, and its potential to bring back their investment if everything does not go as planned. On top of this, if the applicant have proven experience in similar real estate ventures, can place down cash for a down payment, and the cost of similar houses in the vicinity works to his benefit, he will have a very good chance of being eligible for a hard money real estate loan.
So should you run into an outstanding and lucrative flipping opportunity, be assured you will have a hard money lender in Auburn, ready to lend you the funds you will need. Complete the contact form or get in touch with us via phone and let's discuss your property or properties.
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