Hard Money Loans in Ballwin

Suppose that you've come across this really great deal for a fix and flip property you found in an ideal location, and you're either a seasoned real estate investor or a newbie who wants to try out flipping houses. Expert house flippers, such as the young couple on Flip or Flop, HGTV's reality flipping program, are capable of earning a profit of forty to fifty grand on the majority of projects. It's fair to say their past experiences rehabbing, knowledge of hard money loans, expertise in their housing market, and auction talents have played a big part in their results. That said, you have also been developing your rehab and renovation skills, have a general contractor lined up and are positive that you're capable of doing a bang up job for this property.

But funding can be a different problem entirely. For those who get in touch with a customary lending institution, much like a bank for funding, it more than likely will take, as a minimum, four to eight weeks for the approval to be completed and the funds to be accessible. Thus if you are anticipating a fast closing, it is important you recognize that this will cost you a few weeks, making you lose out on the sale.

To add to it, banks have been tightening their lending standards as of late, rendering it more challenging for someone to obtain a conventional home loan if their credit circumstances are not flawless or he is lacking a consistent salaried profession. So will inadequate financing prevent you from sticking with your ambitions? Never, considering that you can always go the Ballwin hard money loan route to finance your flipping project.

A hard money home loan in Ballwin promises what's perhaps most crucial to real estate investors — a quick closing in as few as fourteen days. Additionally, financing is made up to 70% loan-to-value of the "as is" home's valuation, as calculated by a qualified appraiser. At first, hard money real estate loans, with starting interest rates of 10%, seem to be more pricey than bank lending options. But the lengths of these loans are quite shorter, which makes the rate far less significant. Short-term loans of a couple of months to a handful of years are best approached in terms of cost of capital, very much like every other expense involved with a project. Once you've resold the house and have made a good profit, you can recoup this expense from the home — much like recovering the money spent on the brand-new appliances for the kitchen that you installed.

Besides, hard money mortgages are not difficult to qualify for, even if you posses very bad credit. Rather than focusing strictly on the borrower's credit score or net income, Ballwin hard money lenders, who may be a privately owned company or an individual person, approve a loan after examining the home value, how easy it will be to market, its location, and the likelihood of recovering their capital if they have to foreclose the loan. Several other factors that affect a person's approval for a hard money real estate loan can include how much he can put into a down payment, his previous experience being a real estate investor, and price of comparable, fairly recently sold homes in the neighborhood.

Finding a hard money lender in Ballwin to finance your renovation project is not very hard, assuming that the opportunity in front of you is promising and has a strong potential for returns. Enter your info into the form on this page or give us a call and let's discuss your property.

Request More Information

A loan specialist will be in touch shortly

Personal Info

Project Info

Investment property loans only please, no primary residences at this time.