Hard Money Loans in Berkley
Imagine you've encountered this really great deal on a fix and flip property you found in a great neighborhood, and you are either an experienced real estate investor or a newbie who really wants to try his hand at flipping. A majority of people know that knowledgeable professional flippers, along the lines of Tarek and Christina El Moussa from HGTV's reality home flipping program, Fix or Flop, are able to earn an average profit of $40,000 to $50,000 on their home projects. And yes, they are helped in a major way by their professional experience, auction skills and knowledge of hard money loans. With that being said, you have recently been developing your rehab and remodeling knowledge, have a very good building contractor lined up and are certain that you're capable of doing a stellar job for this property.
But financing is often a different question altogether. Should you approach a regular lending institution, like a bank for a loan, it's likely going to take a minimum of thirty to sixty days for the acceptance to be completed and your funds to be distributed. Thus if you are hoping for a fast closing, you have to be aware that this will cost you a couple weeks, making you lose out on the house.
Moreover, if you have a less-than-perfect credit situation or don't receive a conventional income source, it can be tougher to be eligible for a a bank loan, considering the stricter loan requirements banks have introduced as of late. So does that leave you with no option, but to abandon your aspiration to venture into home flipping? Most certainly not, seeing as you also have the Berkley hard money loan alternative.
A hard money home loan in Berkley promises what is possibly most important to real estate investors — a quick closing time of as little as 2 weeks. Further, loan amounts can be done for up to 70% loan-to-value of the "as is" property value, as determined by a qualified appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, could be seen as higher priced than bank loans. But when you appreciate that these are not long-term mortgage loans, the rate can be misleading. Short-term loans of several months to a handful of years are best looked at in terms of cost of capital, much like all other costs in connection with a project. And once you've flipped the home, recovering this expense is identical to recouping the expense for the kitchen and bath improvements you performed.
Also, it is easy to qualify for a hard money mortgage, even in the event your credit situation is not that great. Rather than focusing entirely on the borrower's credit score or source of income, Berkley hard money lenders, who can be a privately owned company or an individual person, approve a loan after analyzing the home value, how easy it will be to market, where it is located, and the odds of recuperating their capital should they have to foreclose the loan. On top of that, if the person have proven experience in comparable real estate endeavors, can put down money towards the down payment, and the cost of comparable houses in the area works to his benefit, he stands an excellent chance of qualifying to get a hard money real estate loan.
So should you run into a very good and lucrative flipping opportunity, feel comfortable knowing you will have a hard money lender in Berkley, equipped to lend you the money you may need. Complete the contact form on this page or get in touch with us via phone and let's talk about the project you have in mind.
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