Hard Money Loans in Bardstown
Imagine you've encountered this excellent deal on a fix and flip property you found in a great location, and you happen to be either a skilled real estate investor or a first-timer who is looking to try his hand at flipping. Most folks know that expert professional flippers, like Tarek and Christina El Moussa from HGTV's reality flipping show, Fix or Flop, are able to generate an average profit of forty to fifty thousand dollars in their rehab business. Of course, you also realize that their success are due to the fact that they're professionals, are knowledgeable in hard money loans, they know market trends really well and furthermore, they know how to work a public auction to buy their properties at a good deal. That said, you've likewise been cultivating your rehab and remodeling skills, have a very good licensed contractor ready to go and are confident that you can do a stellar job for this house.
But how can real estate investors get capital? For those who get in touch with a customary lender, much like a bank for financing, it in all likelihood will take at least 4-8 weeks for the acceptance to come through and the money to be accessible. Considering that all the home owners want a fast closing, that does not appear to be a good idea to you in the slightest.
To add to it, banks have already been tightening their lending criteria as of late, which makes it hard for someone to receive a regular home loan if their credit score is not perfect or he is lacking a regular salaried job. So will a shortage of financing stop you from sticking with your ambitions? Certainly not, given that you always have the Bardstown hard money loan option.
When you put in an application for a hard money home loan in Bardstown, you'll get what is possibly most important to real estate transactions throughout the country — a very fast closing of around a couple weeks. And additionally, financing can be made up to 70% loan-to-value of the "as is" value, as deemed by a licensed appraiser. Some people believe hard money real estate loans to be higher priced than customary financing, since the interest rates of such loans ordinarily start out at 10%. But when you appreciate that these loans are not long-term loans, the rate of interest may be misleading. Short-term loans of several months to a few years are best understood in terms of cost of capital, much like every other expense related to a project. When you have sold the home and have made a positive profit, you can recoup this expense from the home — similar to recovering the money spent on the brand-new kitchen appliances that you have installed.
Moreover, even someone with poor credit can still qualify for a hard money mortgage. As an alternative for focusing strictly on the applicant's credit score or income, Bardstown hard money lenders, who can be a privately owned company or an individual person, authorize a loan as a result of analyzing the property value, ease of marketability, where it is located, and the possibility of recovering their money if they have to foreclose the loan. Additional factors that impact a borrower's acceptance for a hard money real estate loan include how much money he is able to put into a down payment, his former experience as a real estate investor, and price of comparative, fairly recently sold properties nearby.
So any time you run into an outstanding and worthwhile investment opportunity, relax knowing you will have a hard money lender in Bardstown, equipped to loan you the cash you may need. Fill out the form on this page or give us a call and let's discuss the property or properties you have in mind.
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