Hard Money Loans in Battle Creek
Suppose you've come across this excellent deal for a fix and flip property located in a great neighborhood, and you are either a skilled real estate investor or a newbie who wants to try out flipping houses. Everybody knows that capable professional flippers, along the lines of Tarek and Christina El Moussa who star in HGTV's reality home flipping show, Fix or Flop, can make a typical profit of $40,000 to $50,000 when they flip properties. And yes, they are helped in a big way by their professional experience, auction abilities and familiarity with hard money loans. With that being said, you've likewise been brushing up your rehab and remodeling knowledge, have got a general contractor lined up and are positive that you can do a stellar job for this home.
But money can be a different issue altogether. A traditional lending institution, say for example a bank, takes a minimum of 1 to 2 months to approve the loan and release the cash. Since most home owners give preference to a fast closing, it may be advisable to begin looking for additional financing options.
With banks establishing harder loan standards in the past several years, it is now more difficult for a self-employed person to get a home loan, particularly if his credit score is not optimal. So will a shortage of funds keep you from following your dream? Absolutely not, given that you also have the Battle Creek hard money loan alternative.
A hard money home loan in Battle Creek gives you what's regarded as vital to most real estate transactions — a very fast closing of just a 2-3 weeks and at times even less. What's more, the LTV value can go up to 70% of the home's valuation, as estimated by a competent appraiser. With the loan rates starting at about 10%, hard money real estate loans may look, at first glance, to be more expensive compared to traditional bank loans. But usually, the rate of interest isn't as useful a measure for these loans, given that they aren't long-term financing. Short-term loans of a couple months to a handful of years are best understood in terms of cost of capital, very much like any other expense related to a project. Once you have turned the property or home and have made a good profit, you'll be able to recoup this expense from the home — very much like recovering the cost of brand-new appliances for the kitchen that you have installed.
Also, it is easy to qualify for a hard money mortgage, even if your credit score is not that great. The customer's credit score is not the lone deciding factor for Battle Creek hard money lenders — they also consider the property, its market value, where it is located, and its capacity to earn back their financial commitment if things do not go as planned. Several other criteria that have an impact on a borrower's acceptance for a hard money real estate loan can include how much he is able to put towards a down payment, his former experience as a real estate investor, and price of similar, recently sold homes nearby.
So in case you have found a really good real estate opportunity with a huge chance of returns, you've also stumbled upon a hard money lender in Battle Creek who's prepared to provide financing for your rehab ventures. Submit the form on this page or call us to discuss the property you have in mind.
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