Hard Money Loans in Berkeley
There is this amazing opportunity to renovate and flip this nice outdated house in a good part of town and it looks a lot like the one you have been eagerly waiting on for a long time. You've probably heard that competent home flippers, like the married couple on HGTV's Flip or Flop, enjoy a remarkable average profit margin near forty to fifty thousand dollars. And indeed, they are helped in a big way by their professional experience, auction skills and familiarity with hard money loans. Still, your rehab and renovation skills aren't that bad either — in any case, you've already found a suitable building contractor to start this job.
But where can you find the necessary capital for flipping? If you go after a regular loan from the bank, you will have to wait somewhere around one to two months until the money is approved and the money is available. With the sellers wanting a fast closing, that does not seem like a great idea to you in the slightest.
To add to it, banks have been tightening their lending requirements in recent years, which makes it difficult for someone to obtain a typical home loan if their credit rating is not perfect or he is lacking a regular salaried occupation. So will a lack of financing prevent you from following your dream? Not at all, particularly while Berkeley hard money loans enable you to achieve great things in the real estate world.
A hard money home loan in Berkeley provides what is considered essential to many real estate sales — a fast closing of just a 2-3 weeks and at times less. Furthermore, hard money lenders can do lending up to 70% LTV of the home's valuation, as assessed by a certified third-party evaluator. With lending rates starting around 10%, hard money real estate loans might seem, at first glance, to be higher in price as compared with conventional bank financing. But when you appreciate that these are not long-term home loans, the rate of interest can be misleading. The price tag on such short-term loans should be looked at much like every other expense that you might encounter during the project. And when you have sold the home, recouping this expense is identical to recouping the expense for all the bathroom upgrades you did.
What's more, it is easy to qualify for a hard money mortgage, regardless of whether your credit score is not that impressive. Berkeley hard money lenders don't take on a loan exclusively according to the applicant's credit score — rather they will evaluate the property or home, its location and value, and the home's capability to pay back the loan by itself. Additional criteria that have an impact on a customer's approval for a hard money real estate loan can include the amount he can put into a down payment, his former experience as a real estate investor, and price of comparative, recently sold homes in the area.
So in case you have stumbled on a wonderful fixer-upper with a huge probability of returns, you have also found yourself a hard money lender in Berkeley that is prepared to finance your fix and flip projects. Complete the contact form or call us and let's talk about the property you have in mind.
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