Hard Money Loans in Bettendorf
An incredible bargain on a fix and flip opportunity in an excellent neighborhood all of a sudden shows up — seems so good that it's hard to believe. Many people know that capable professional flippers, like Tarek and Christina El Moussa from HGTV's reality flipping series, Fix or Flop, can readily turn an average profit margin of forty to fifty thousand dollars on their home projects. Naturally, you also understand that their great results are attributed to the simple fact that they are professionals, are proficient in hard money loans, they understand the market really well and furthermore, they are good at working an auction to buy their houses at a reasonable deal. However, you're assured that your superb rehab and renovation knowledge will enable you to do an outstanding job on this house — in addition, you've already lined up one of the finest general contractors in the area to take on this job.
But how do you find the needed financing for home flipping? A conventional lending institution, like for example a bank, takes at a minimum 1 to 2 months to approve the financing and provide the cash. Given that sellers prefer a fast closing, you might want to start searching for other financing alternatives.
With banks adding more challenging loan requirements in the past several years, it has become harder for a self-employed person to get a home loan, particularly if his credit rating is not optimal. So does that mean you are without an option, but to give up your aspiration of venturing into home flipping? Under no circumstances, particularly while Bettendorf hard money loans enable you to realize great things in real estate.
A hard money home loan in Bettendorf provides what is viewed as essential to most real estate sales — a fast closing of only a 2-3 weeks and sometimes even less. Additionally, financing can be done for up to 70% loan-to-value of the as-is property's valuation, as calculated by a licensed appraiser. With rates starting out near 10%, hard money real estate loans may seem, at first, to be higher priced when compared with conventional bank financing. But the term lengths for these loans are quite short, making the rate much less significant. When it comes to short-term loans of a few years or less, you should look at them just like you would other expenses for your project. And once you've finally sold the property, recouping this expense is comparable to recouping the expense for all the bathroom or other upgrades you performed.
Also, it's easy to qualify for a hard money mortgage, regardless of whether your credit situation is not that great. Bettendorf hard money lenders do not approve a loan solely on the basis of the applicant's credit score — instead they will look at the home, its location and value, and the property's capacity to pay back the loan independent of the applicant. How much of their own money an applicant can put upfront for the home, his past real estate experience, and selling price of comparative homes in the vicinity are various other factors that go into establishing a borrower's suitability for a hard money real estate loan.
If you happen to have found a really great home to flip with a significant probability of returns, you've also stumbled upon a hard money lender in Bettendorf that is prepared to finance your flipping ventures. Fill out the contact form or call us to talk about the project you have in mind.
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