Hard Money Loans in Bay City
Suppose that you've run into this really great deal on a fix and flip property in an ideal location, and you are either a seasoned real estate investor or a newbie who is looking to try out flipping houses. Professional house flippers, much like the young married couple on Flip or Flop, HGTV's reality flipping program, are capable of hauling in a gain of $40-$50k on a consistent basis. And indeed, they are aided in a big way via their professional know-how, auction expertise and understanding of hard money loans. Having said that, you've likewise been brushing up your rehab and renovation knowledge, have got a contractor arranged and are positive that you can do a great job on this property.
But funding is often a separate issue entirely. When you opt for a conventional bank loan, you will need to wait around somewhere around 1 to 2 months up until the time the mortgage is approved and your funds are ready to go. So if you're expecting a fast closing, you must recognize that this may cost you a couple weeks, causing you to miss out on the sale.
As well as this, should you have a less-than-perfect credit situation or do not have a consistent income, it is normally more challenging for you to be eligible for a bank loan, with the more stringent loan guidelines banks have issued in recent times. So should you give up and abandon your aspiration to embark into real estate? Under no circumstances, especially while Bay City hard money loans can help you achieve many amazing things in the real estate world.
A hard money home loan in Bay City promises what is perhaps most important to real estate investors — a very fast closing time period of as little as fourteen days. What's more, the LTV value can range up to 70% of the place's valuation, as evaluated by a certified appraiser. Some people believe hard money real estate loans to be higher in price than customary financing, because the lending rates of such loans ordinarily start at 10%. But usually, the interest rate isn't as pertinent for these loans, given that they will never be long-term loans. Short-term loans of several months to a handful of years are best understood in terms of cost of capital, much like any other financial outlay in connection with a project. And when you've finally flipped the property or home, recouping this expense is comparable to recouping the expense for all the kitchen and bath upgrades you did.
Moreover, even an individual with low credit can easily qualify for a hard money mortgage. The person's credit score is not the sole deciding factor for Bay City hard money lenders — they also look at the property, its market valuation, where it is located, and its potential to bring back their investment if things should not go as planned. Adding to that, if the borrower can demonstrate prior experience in comparable real estate projects, can place down cash towards a down payment, and the cost of comparative houses in the area works to his benefit, he will have a good likelihood of being eligible for a hard money real estate loan.
So if you have found a wonderful fixer-upper with a significant prospect of returns, you have also found yourself a hard money lender in Bay City that is prepared to fund your fix and flip projects. Fill out the form or get in touch with us via phone to discuss the property or properties you have in mind.
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