Hard Money Loans in Beavercreek
Suppose that you've stumbled upon this excellent deal on a fix and flip property located in an ideal neighborhood, and you are either an experienced real estate investor or a first-timer who really wants to try out flipping homes. Expert house flippers, similar to the young married couple on Flip or Flop, HGTV's reality flipping program, are capable of earning a profit of $40-$50k for the majority of homes. Of course, you also know that their results can be attributed to the fact that they are industry experts, are well versed in hard money loans, they understand the market really well and furthermore, they are good at working an auction for getting an appropriate price. Having said that, you have recently been cultivating your rehab and remodeling knowledge, have a very good licensed contractor ready to go and are certain that you're capable of doing a great job on this house.
But where can real estate investors find capital? If you opt for a normal loan from the bank, you will wind up waiting around somewhere around 4-8 weeks up until the money is authorized and the funds are readily available. So if you are looking for a fast closing, it is important to understand or know that this will set you back by a couple of weeks, causing you to lose out on the house.
On top of this, banks have already been tightening their lending requirements in recent years, making it difficult for someone to get a typical home loan if their credit situation is not flawless or he is lacking a regular salaried profession. So must you give up and forego your ambition to venture into fix and flips? Most certainly not, seeing as you always have the Beavercreek hard money loan option.
A hard money home loan in Beavercreek provides what's perhaps most crucial to real estate investors — a very fast closing time of as few as a few weeks. Also, hard money lenders will often consent to funding up to 70% LTV of the home's valuation, as determined by a licensed third-party evaluation. Some people believe hard money real estate loans to be more expensive than standard loans, considering lending rates of such loans commonly start out at 10%. But usually, the rate of interest is not as relevant for these loans, given that they will never be long-term loans. Short-term loans of a couple of months to a handful of years are best thought of in terms of cost of capital, the same as all other costs involved with a project. Once you've sold the home and have made a successful gain, you're able to get back this expense from the house — similar to recuperating the money spent on the brand-new appliances for the kitchen that you have put in.
Also, it is easy to obtain a hard money mortgage, even in the event your credit situation is not that great. Beavercreek hard money lenders don't authorize a loan exclusively based on the applicant's credit score — instead they will look at the property or home, its location and value, and the home's ability to pay back the financing on its own. How much of their own money a borrower can put down in advance for the home, how much practical experience he has in real estate investing, and selling price of comparative properties in the same area are additional factors that go into ascertaining an individual's eligibility for a hard money real estate loan.
So any time you run into a good and profitable investment opportunity, rest assured you will have a hard money lender in Beavercreek, prepared to loan you the capital you'll need. Complete the contact form on this page or give us a call and let's discuss your property or properties.
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