Hard Money Loans in Belleville
A fantastic buy on a fix and flip opportunity in a very good area of the city suddenly turns up — sounds too good to be true. Professional property flippers, similar to the young couple on Flip or Flop, HGTV's reality flipping show, are able to haul in a profit of $40-$50k on the majority of projects. And yes, they are aided in a big way via their professional knowledge, auction expertise and familiarity with hard money loans. That said, you have recently been cultivating your rehab and remodeling skills, have a licensed contractor ready for the project and are certain that you're capable of doing a stellar job for this property.
But where do real estate investors get financing? Should you apply for a normal loan from the bank, you will wind up waiting approximately 1 to 2 months until eventually the loan is approved and your funds are accessible. Considering that all the sellers are seeking a fast closing, that does not seem like a good option to you whatsoever.
With banks bringing in harder loan criteria in recent years, it's become more challenging for a self-employed individual to find a mortgage loan, especially if his credit score is not optimal. So do you have to give up and abandon your ambition to venture into real estate? Most certainly not, seeing as you also have the Belleville hard money loan alternative.
A hard money home loan in Belleville gives you what's perhaps most crucial to real estate investors — a fast closing in as few as 2 weeks. In addition, the LTV value can go up to 70% of the home value, as evaluated by a credentialed appraiser. At first, hard money real estate loans, with starting lending rates of 10%, could be seen as more expensive than bank lending options. But in reality, the lending rate isn't as useful a measure for these loans, simply because they aren't long-term financing. Short-term loans of a couple months to a few years are best thought of in terms of cost of capital, the same as every other expense in connection with a project. Once you've resold the home and have made a successful profit, you'll be able to recover this expense from the property — just like recuperating the money spent on the brand-new home appliances that you've installed.
Furthermore, even an individual with poor credit can still qualify for a hard money mortgage. The borrower's credit score will not be the primary determining factor for Belleville hard money lenders — in addition, they look at the house, how much it is worth, where it is located, and its ability to earn back their investment if things do not work out as intended. The amount that a person can put upfront for the property or home, how much practical experience he has in real estate investing, and price range of comparable properties in the same area are various other details that go into ascertaining a person's suitability for a hard money real estate loan.
Finding a hard money lender in Belleville to fund your real estate project is not difficult, provided that the opportunity in front of you is promising and has a good potential for returns. Submit the form or give us a call and let's discuss the property or properties you have in mind.
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