Hard Money Loans in Bainbridge
Imagine you've encountered this really great deal on a fix and flip property in a great location, and you happen to be either a seasoned real estate investor or a newbie who really wants to try out flipping homes. Most folks know that capable professional flippers, such as Tarek and Christina El Moussa from HGTV's reality flipping program, Fix or Flop, can earn an average profit of $40,000 to $50,000 in their rehab business. And indeed, they are aided in a major way via their professional experience, auction abilities and familiarity with hard money loans. Still, your rehab and remodeling skills aren't that bad either — aside from that, you've already found the right general contractor to start this home.
But financing can be a separate problem altogether. Should you meet with a customary lending institution, like a bank for a loan, it is more than likely going to take at least thirty to sixty days for the approval to come through and your funds to be sent out. With the home owners wanting a fast closing, that does not seem like a good idea to you at all.
To add to it, banks have been tightening up their lending criteria as of late, which makes it hard for someone to receive a conventional loan if their credit circumstances are not perfect or he does not possess a regular salaried occupation. So will inadequate funding stop you from pursuing your dream? Under no circumstances, especially when Bainbridge hard money loans can help you achieve great things in the real estate world.
Should you apply for a hard money home loan in Bainbridge, you will get what's perhaps most vital to real estate transactions throughout the country — a fast closing of approximately 2 weeks. In addition, the LTV value can reach up to 70% of the home value, as determined by a competent appraiser. With loan rates starting out at about 10%, hard money real estate loans may appear, at first, to be more costly in comparison with traditional bank financing. But the time frames of these loans tend to be quite shorter, which makes the rate far less important. The price of such short-term loans should be viewed much like any other cost that you might encounter in the course of the project. Once you've resold the property and have made a successful return, you'll be able to reclaim this expense from the house — just like recovering the money necessary for the brand-new kitchen appliances that you have installed.
Furthermore, even someone with bad credit can easily be eligible for a hard money mortgage. The borrower's credit score will not be the primary deciding factor for Bainbridge hard money lenders — additionally, they evaluate the house, its market value, its location, and its ability to earn back their financial commitment if everything does not go as planned. Other variables that impact a person's approval for a hard money real estate loan can include how much he can put into a down payment, his former experience as a real estate investor, and price of similar, just recently sold residences in the vicinity.
If you happen to have stumbled upon a really good real estate opportunity with a significant probability of returns, you have also stumbled upon a hard money lender in Bainbridge who is willing to provide funding for your flipping ventures. Complete the form on this page or get in touch with us via phone and let's talk about the project you have in mind.
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