Hard Money Loans in Berea
Suppose you've run into this really great deal on a fix and flip property you found in a great location, and you're either a skilled real estate investor or a first-timer who hopes to try his hand at flipping. Many people know that knowledgeable professional flippers, such as Tarek and Christina El Moussa who do HGTV's reality home flipping series, Fix or Flop, can readily make an average profit of $40,000 to $50,000 when they rehab properties. It goes without saying their rehabbing experience, knowledge of hard money loans, familiarity with the housing market, and auction skills have played an important part in their results. With that being said, you've recently been brushing up your rehab and renovation skills, have a very good contractor ready for the project and are positive that you're capable of doing a bang up job on this property.
But where precisely can real estate investors get money? When you opt for a conventional loan via a bank, you will wind up waiting approximately 30-60 days up until the time the loan is approved and your funding is accessible. So if you will be wishing for a fast closing, it is important to be aware that this may set you back by weeks, causing you to lose out on the sale.
Furthermore, in case you have a less-than-perfect credit score or do not have a consistent income, it usually is more difficult to qualify for bank financing, considering the more stringent loan criteria banks have issued recently. So will a shortage of funding stop you from following your aspirations? Absolutely not, given that you always have the Berea hard money loan option.
A hard money home loan in Berea boasts what is probably most desired by real estate investors — a fast closing in as few as a few weeks. And additionally, financing can be done for up to 70% loan-to-value of the as-is home's valuation, as calculated by a licensed appraiser. At first glance, hard money real estate loans, with starting interest rates of 10%, seem to be more costly than bank lending products. But if you consider these are not long-term home loans, the interest rate can be misleading. 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. Right after you renovate and unload the home, recovering this expense is no different than recovering the expense for new kitchen appliances you placed into the property.
Aside from that, hard money mortgages are not hard to qualify for, regardless if you posses a weak credit score. As an alternative for focusing exclusively on the applicant's credit score or wages, Berea hard money lenders, who could be a private company or an individual person, approve a loan after assessing the home value, its marketability, where it is located, and the odds of recuperating their capital in case of foreclosure. Adding to this, if the individual can demonstrate prior experience in equivalent real estate ventures, can place down cash towards the down payment, and the price of similar homes in the area works in his favor, he will have a really good likelihood of being eligible to obtain a hard money real estate loan.
If you happen to have stumbled on an excellent home to flip with a significant potential for returns, you have also stumbled upon a hard money lender in Berea who's willing to provide financing for your fix and flip venture. Enter your info into the form on this page or give us a call to discuss your project.
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