Hard Money Loans in Benton Harbor
There's this outstanding possibility for renovating and flipping this nice out of date home in a very good part of town and it seems like the one you have been eagerly waiting on for quite a while. You've heard that veteran house flippers, such as the husband and wife on HGTV's Flip or Flop, have a remarkable average profit margin near $40,000 – $50,000. Naturally, you also understand that their results are due to the fact that they are professionals, are knowledgeable in hard money loans, they know the marketplace really well and they also know how to work a public auction to purchase their houses at an appropriate deal. Still, your rehab and remodeling skills aren't that bad either — aside from that, you have already located the right licensed contractor to start the home.
But capital is usually a separate issue altogether. Should you go after a regular loan from the bank, you will end up waiting roughly 1-2 months until the loan is approved and the money is ready to go. With the sellers seeking a fast closing, that doesn't appear like a wise idea to you in the slightest.
With banks bringing in tougher loan criteria in the last few years, it has become more difficult for a self-employed person to get a mortgage loan, especially if his credit rating is not perfect. So will a lack of financing prevent you from following your aspirations? Not at all, especially while Benton Harbor hard money loans can help you accomplish great things in the real estate market.
A hard money home loan in Benton Harbor can provide what is viewed as imperative to most real estate deals — a quick closing of only a few weeks and sometimes even less. Also, hard money lenders will often consent to loans up to 70% LTV of the property's valuation, as established by a qualified third-party evaluator. With interest rates starting out at about 10%, hard money real estate loans might seem, at first, to be more expensive as compared with traditional bank loans. But usually, the interest rate isn't as relevant for these loans, given that they aren't long-term financing. Short-term loans of several months to a few years are best thought of as cost of capital, the same as all other costs associated with a project. Once you have resold the house and have made a good financial gain, you'll be able to get back this expense from the house — the same as recuperating the money necessary for the brand-new kitchen appliances that you've put in.
Furthermore, even someone with low credit can still be eligible for a hard money mortgage. Benton Harbor hard money lenders don't approve a loan strictly on the basis of the borrower's credit score — rather they will analyze the property, where it is located and what it is worth, and the property's ability to pay back the financing on its own. Adding to this, if the applicant have proven experience in similar real estate ventures, can place down money towards a down payment, and the cost of comparative homes in the neighborhood works in his favor, he has got an excellent chance of being eligible for a hard money real estate loan.
So should you come across a very good and profitable investment opportunity, relax knowing you'll have a hard money lender in Benton Harbor, willing to loan you the cash that you need. Enter your info into the form or call us to talk about your property or properties.
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