Hard Money Loans in Barnesville
There is this outstanding opportunity to rehab and flip this wonderful old condo in a very good location and it seems a lot like the deal you've been expecting for quite some time. You may have heard that professional home flippers, such as the couple on HGTV's Flip or Flop, enjoy an impressive average return near $40,000 – $50,000. Without question, their rehabbing experience, understanding of hard money loans, familiarity with the market, and auction talents have been large factors to their results. Nevertheless, you are convinced that your superb rehab and remodeling abilities will help you do an outstanding job on this house — furthermore, you have already lined up one of the best general contractors in town to take care of the project.
But where do you find the necessary financing for flipping? For those who opt for a conventional bank loan, you will wind up waiting approximately 4-8 weeks until eventually the money is approved and your funds are ready. With all the sellers looking for a fast closing, that does not appear to be a good idea to you in the slightest.
On top of this, banks have already been tightening up their lending standards in recent years, making it difficult for a person to get an ordinary home loan if their credit score is not perfect or he is lacking a regular salaried profession. So will a lack of financing stop you from sticking with your ambitions? Not at all, especially when Barnesville hard money loans can help you achieve many amazing things in the real estate market.
A hard money home loan in Barnesville offers you what's viewed as crucial to many real estate deals — a very fast closing of only a few weeks and at times even less. Additionally, loan amounts are made up to 70% loan-to-value of the "as is" property's valuation, as calculated by a licensed appraiser. On the surface, hard money real estate loans, with starting lending rates of 10%, appear to be more expensive than bank lending options. But the term lengths for these loans are relatively shorter, making the rate much less significant. Short-term loans of a couple of months to a handful of years are best understood in terms of cost of capital, similar to every other financial outlay related to a project. And when you've flipped the house, recuperating this expense is comparable to recouping the expense for all the bathroom upgrades you did.
In addition, even someone with poor credit can easily qualify for a hard money mortgage. Rather than focusing entirely on the applicant's credit score or source of income, Barnesville hard money lenders, who could be a privately owned company or an individual, say yes to a loan as a result of analyzing the home value, how easy it will be to market, where it is located, and the probability of recuperating their capital in the event of foreclosure. Several other factors that affect a borrower's approval for a hard money real estate loan include the amount he is able to put towards a down payment, his previous experience as a real estate investor, and price of comparable, fairly recently sold residences in the vicinity.
So in the event you come across a really good and profitable flipping opportunity, rest assured you will have a hard money lender in Barnesville, in a position to lend you the capital you will need. Complete the form on this page or give us a call to talk about the project you have in mind.
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