Hard Money Loans in Bellbrook
An outstanding buy on a fix and flip property in an excellent neighborhood suddenly turns up — sounds too good to be true. Everybody knows that expert professional flippers, such as Tarek and Christina El Moussa from HGTV's reality home flipping series, Fix or Flop, can earn an average profit of forty to fifty thousand dollars when they rehab properties. It goes without saying their rehabbing experience, knowledge of hard money loans, expertise in their market, and auction skills have played an important part in their success. That said, you've recently been brushing up your rehab and remodeling knowledge, have a contractor ready to go and are positive that you're capable of doing an impressive job on this home.
But financing is usually a separate problem altogether. In the event you apply for an ordinary bank loan, you will end up waiting around approximately one to two months up until the time the mortgage is authorized and your funds are readily available. Considering that the sellers want a fast closing, that doesn't appear to be a great idea to you in the slightest.
To add to it, banks have already been tightening their lending requirements as of late, making it challenging for a person to get a conventional home loan if their credit circumstances are not perfect or he does not possess a regular salaried profession. So should you admit defeat and forego your aspiration to venture into fix and flips? Absolutely not, given that you also have the Bellbrook hard money loan option.
If you decide to put in an application for a hard money home loan in Bellbrook, you'll get what's possibly most important to real estate offers throughout the country — a fast closing of about two weeks. In addition, the LTV value can go up to 70% of the property's valuation, as estimated by a competent appraiser. A number of people consider hard money real estate loans to be costlier than customary financing, considering lending rates for these loans generally start out at 10%. But when you consider these loans are not long-term mortgage loans, the rate of interest can be misleading. Short-term loans of a couple of months to a few years are best approached as cost of capital, the same as any other expense associated with a project. And once you have sold the house, recuperating this expense is the exact same as recuperating the expense for all the kitchen and bath improvements you did.
What's more, it isn't difficult to be eligible for a hard money mortgage, even when your credit rating is not that great. Instead of focusing primarily on the borrower's credit score or source of income, Bellbrook hard money lenders, who can be a private company or an individual, approve a loan after evaluating the property value, ease of marketability, where it is located, and the odds of recuperating their money in the event of foreclosure. The amount that a borrower can put upfront for the property, his real estate experience, and selling price of comparable properties in the area are additional factors that go into establishing an applicant's eligibility for a hard money real estate loan.
So in case you have found a really great home to flip with a high chance of returns, you have also discovered a hard money lender in Bellbrook that's prepared to finance your flipping projects. Fill out the form or give us a call to discuss your project.
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