Hard Money Loans in Beverly Hills
Suppose that you've come across this really great deal for a fix and flip property in an ideal location, and you are either a seasoned real estate investor or a newbie who really wants to try out flipping houses. Expert house flippers, like the young couple on Flip or Flop, HGTV's reality flipping series, are able to generate a profit of forty to fifty grand for the majority of homes. No need to explain that their rehabbing experience, knowledge of hard money loans, expertise in their market, and auction talents have had an important role in their success. Still, your rehab and remodeling knowledge isn't bad either — aside from that, you've already found the right licensed contractor to start the job.
But where do you find the necessary capital for flipping? If you approach a regular lending institution, such as a bank for funding, it is very likely going to take, at a minimum, 30-60 days for your acceptance to come through and your money to be given out. Given that sellers prefer a fast closing, it may be advisable to begin seeking out additional funding alternatives.
What's more, should you have a less-than-perfect credit score or do not receive a routine source of income, it usually is tougher to obtain a bank loan, seeing the stricter loan guidelines banks have put in place recently. So does this mean you have no option, but to abandon your dream of getting into the fix and flip business? Under no circumstances, particularly while Beverly Hills hard money loans can help you realize great things in the real estate world.
If you should apply for a hard money home loan in Beverly Hills, you'll get what's perhaps most important to real estate offers throughout the country — a very fast closing of around two weeks. In addition, the LTV value can reach up to 70% of the property's valuation, as evaluated by a certified appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, could be seen as more costly than bank lending products. But in reality, the rate of interest is not as relevant for these loans, because they are not long-term loans. As it pertains to short-term loans of several years or even less, you should look at them just like you would other expenses for the project. And when you've turned the home, recuperating this expense is identical to recouping the expense for the bathroom updates you did.
Apart from this, hard money mortgages are easy qualifying, even if you have got less-than-perfect credit. The borrower's credit score isn't the single deciding factor for Beverly Hills hard money lenders — in addition, they look at the house, what is it valued at, its location, and its ability to return their investment if everything does not work out as planned. The total amount that an applicant can put down in advance for the home, his past real estate experience, and price range of comparative homes in the same vicinity are other details that go into ascertaining an applicant's suitability for a hard money real estate loan.
Finding a hard money lender in Beverly Hills to finance your flipping business is not very hard, provided that the opportunity that lies ahead of you is promising and offers a good prospect for returns. Submit the form or give us a call to discuss the property or properties you have in mind.
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