Hard Money Loans in Beloit
A fabulous buy on a fix and flip property located in an excellent area of the city suddenly turns up — seems so good that it is difficult to believe. A majority of people know that capable professional flippers, like Tarek and Christina El Moussa who do HGTV's reality flipping series, Fix or Flop, can readily generate an average profit margin of $40,000 to $50,000 on their home projects. And sure, they are helped in a major way via their professional know-how, auction abilities and knowledge of hard money loans. Still, your rehab and renovation knowledge isn't that bad either — in any case, you've already found a good general contractor to take on this project.
But how can you get the necessary capital for flipping? For those who opt for an ordinary bank loan, you will have to wait roughly 30-60 days up until the time the mortgage loan is approved and the money is available. Because most home owners prefer a fast closing, you might want to start seeking out other funding options.
With banks bringing in tougher loan standards in the past several years, it's become more difficult for a self-employed individual to get a mortgage loan, especially if his credit rating is not optimal. So must you give up and forego your aspiration to venture off into real estate? Certainly not, seeing as you also have the Beloit hard money loan alternative.
If you decide to apply for a hard money home loan in Beloit, you have access to what's probably most vital to real estate purchases across the country — a quick closing of around 2 weeks. Further, financing can be made up to 70% loan-to-value of the as-is property value, as deemed by a qualified appraiser. At first, hard money real estate loans, with starting lending rates of 10%, seem to be costlier than bank loans. But once you consider these loans are not long-term mortgage loans, the interest rate may be misleading. Short-term loans of a couple months to a handful of years are best thought of in terms of cost of capital, the same as any other expenditure related to a project. And as soon as you have sold the property or home, recovering this expense is comparable to recouping the expense for all the kitchen and bath improvements you did.
What's more, it's easy to obtain a hard money mortgage, even when your credit score is not that impressive. Beloit hard money lenders don't take on a loan exclusively based on the applicant's credit score — instead they also look at the home, its location and value, and the home's ability to pay back the loan independent of the person. Adding to this, if the individual have proven experience in equivalent real estate projects, can put down cash for a down payment, and the cost of comparable properties in the vicinity works to his benefit, he stands a very good likelihood of being eligible for a hard money real estate loan.
If you happen to have found a really great real estate opportunity with a huge probability of returns, you've also found yourself a hard money lender in Beloit that's willing to provide funding for your flipping projects. Enter your info into the form or get in touch with us via phone and let's talk about your project.
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