Hard Money Loans in Bay City
You discovered this phenomenal opportunity to fix and flip this nice outdated home in a fantastic area and it looks a lot like the deal you've been eagerly waiting on for a long time. You've heard that competent property flippers, like the married couple on HGTV's Flip or Flop, have an impressive average profit of around forty to fifty thousand dollars. It's fair to say their past experiences rehabbing, understanding of hard money loans, familiarity with the market, and auction talents have been large factors to their successes. Nonetheless, your rehab and remodeling knowledge isn't bad either — besides, you have already identified a good building contractor to take on this project.
But capital is often a different question entirely. A standard lending institution, say for example a bank, takes at a minimum 1-2 months to approve the mortgage and release the monies. Considering that all the home owners are wanting to find a fast closing, that doesn't appear to be a good idea to you in the slightest.
As well as this, if you have an unfavorable credit score or don't receive a consistent source of income, it is usually more challenging to be eligible for a a bank loan, seeing the stricter loan criteria banks have introduced as of late. So does this leave you with no other option, but to drop your ambition of getting into home renovating? By no means, because you can always use the Bay City hard money loan approach to finance your flipping project.
A hard money home loan in Bay City can provide what's regarded as crucial to most real estate transactions — a very fast closing of only a couple of weeks and oftentimes even less. Also, hard money lenders are capable of doing funding up to 70% LTV of the property value, as identified by a professional third-party evaluator. On the surface, hard money real estate loans, with starting interest rates of 10%, could be seen as more costly than bank lending products. But the term lengths for these loans tend to be quite shorter, making the interest rate less important. The price tag on such short-term loans ought to be considered on par with any other cost that you would encounter in the course of the project. And as soon as you have sold the home, recuperating this expense is the exact same as recouping the expense for all the kitchen and bath improvements you performed.
What's more, it is easy to obtain a hard money mortgage, regardless of whether your credit rating is not that impressive. The customer's credit score is not the single deciding factor for Bay City hard money lenders — they also analyze the house, its market value, where it is located, and its capacity to earn back their financial commitment if everything does not go as planned. Other variables that impact an individual's acceptance for a hard money real estate loan can include what amount of money he is able to put into a down payment, his prior experience being a real estate investor, and price range of comparable, recently sold homes in the neighborhood.
So should you come across a good and worthwhile flipping opportunity, be assured you will have a hard money lender in Bay City, prepared to loan you the money that you need. Enter your info into the contact form on this page or give us a call and let's discuss the property you have in mind.
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