Hard Money Loans in Bethalto
Suppose that you've come across this excellent bargain on a fix and flip property in an ideal neighborhood, and you're either a seasoned real estate investor or a newbie who wants to try his hand at flipping. You may have heard that veteran home flippers, similar to the husband and wife on HGTV's Flip or Flop, enjoy a remarkable average return near $40,000 – $50,000. Undoubtedly, you also are aware that their great results can be credited to the fact that they are professionals, are well versed in hard money loans, they understand market trends quite well and furthermore, they are good at working a public auction to purchase their homes at a good price. Nonetheless, your rehab and renovation skills aren't bad either — in any case, you have already located a suitable licensed contractor to handle this project.
But how do you obtain the needed financing for flipping? A typical lender, for instance a bank, takes no less than 1-2 months to authorize the loan and provide the money. Thus if you happen to be expecting a fast closing, you have to be aware that this will cost you a couple weeks, making you lose out on the opportunity.
What's more, should you have a less-than-perfect credit rating or do not have a regular income source, it can be more difficult to be eligible for a bank loan, considering the stricter loan criteria banks have issued as of late. So will a shortage of funding prevent you from sticking to your ambitions? Not at all, especially while Bethalto hard money loans will assist you to realize many amazing things in the real estate market.
A hard money home loan in Bethalto can provide what is regarded as imperative to many real estate transactions — a very fast closing of only a few weeks and at many times even less. Aside from that, financing can be done for up to 70% loan-to-value of the "as is" value, as established by a qualified appraiser. At first, hard money real estate loans, with starting interest rates of 10%, appear to be more costly than bank loans. But the term lengths for these loans are relatively short, making the interest rate much less important. Short-term loans of several months to a few years are best understood as cost of capital, much like any other financial outlay in connection with a project. When you have sold the home and have made a successful return, you'll be able to recover this expense from the home — very much like recouping the money necessary for the brand-new kitchen appliances that you have installed.
Aside from that, hard money mortgages are not difficult to qualify for, even if you have got poor credit. Bethalto hard money lenders don't authorize a loan exclusively judging by the applicant's credit score — rather they also examine the property or home, its value and location, and the home's capacity to pay back the loan independent of the applicant. How much money an applicant can put down beforehand towards the property or home, his past real estate experience, and selling price of comparative homes in the same neighborhood are various other factors that go into establishing an applicant's qualification for a hard money real estate loan.
Locating a hard money lender in Bethalto to fund your flipping business is not difficult, so long as the opportunity in front of you is promising and offers a good prospect for returns. Enter your info into the contact form on this page or get in touch with us via phone to talk about your property or properties.
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