Hard Money Loans in Baltimore
Suppose that you've stumbled upon this excellent deal for a fix and flip property in a terrific location, and you happen to be either a skilled real estate investor or a newbie who really wants to try out flipping houses. You may have heard that professional house flippers, like the married couple on HGTV's Flip or Flop, have a remarkable average profit margin near forty to fifty thousand dollars. And sure, they are aided in a major way due to their professional know-how, auction expertise and familiarity with hard money loans. On the other hand, you're certain that your superb rehab and renovation skills will assist you to do an outstanding job on the house — in addition, you have already arranged to have one of the best contractors in the business to work on this job.
But funding is a different issue entirely. For those who get in touch with a regular lender, such as a bank for a loan, it is in all likelihood going to take at least four to eight weeks for the acceptance to be completed and your money to be accessible. So if you will be hoping for a fast closing, it's important for you to recognize that this may set you back by a couple weeks, causing you to miss out on the house.
Moreover, should you have a less-than-perfect credit rating or do not receive a conventional income, it can be more challenging to obtain bank financing, seeing the more stringent loan requirements banks have issued recently. So do you have to give up and abandon your dream to get into real estate? Certainly not, seeing as you always have the Baltimore hard money loan alternative.
If you put in an application for a hard money home loan in Baltimore, you'll get what is probably most vital to real estate purchases throughout the country — a very fast closing of approximately 14 days. What's more, the LTV value can range up to 70% of the home's valuation, as determined by a competent appraiser. With the rates starting off at about 10%, hard money real estate loans might appear, initially, to be higher in price in comparison with conventional bank loans. But usually, the rate of interest is not as useful a measure for these loans, since they will never be long-term loans. Short-term loans of several months to a few years are best approached as cost of capital, very much like any other expenditure related to a project. Right after you rehab and sell off the property, recuperating this expense is just like recouping the money you spent for new kitchen appliances you put in the home.
What's more, it isn't difficult to obtain a hard money mortgage, regardless if your credit score is not that extraordinary. The customer's credit score is not the exclusive determining factor for Baltimore hard money lenders — in addition, they examine the home, its market valuation, its location, and its capacity to earn back their investment if everything does not work out as intended. Adding to this, if the borrower can demonstrate prior experience in similar real estate endeavors, can place down cash for the down payment, and the cost of comparable properties in the vicinity works to his benefit, he will have a very good shot of qualifying to get a hard money real estate loan.
Locating a hard money lender in Baltimore to finance your fix and flip endeavor is not hard, as long as the opportunity that lies before you is promising and possesses the right prospect for returns. Fill out the contact form on this page or get in touch with us via phone and let's discuss the property or properties you have in mind.
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