Hard Money Loans in Big Beaver
Suppose that you've stumbled upon this excellent deal on a fix and flip property you found in an ideal location, and you happen to be either a seasoned real estate investor or a newbie who wants to try his hand at flipping. Everyone knows that capable professional flippers, such as Tarek and Christina El Moussa from HGTV's reality flipping series, Fix or Flop, can earn an average profit margin of forty to fifty thousand dollars on their flips. Of course, you also are aware that their successes can be credited to the simple fact that they're industry experts, are proficient in hard money loans, they understand the marketplace really well and they also know how to work an auction for getting a good deal. Nonetheless, your rehab and renovation skills aren't bad either — aside from that, you've already located an ideal licensed contractor to take on this home.
But where precisely do real estate investors get financing? When you go after a traditional bank loan, you will wind up waiting around approximately 1-2 months until eventually the money is authorized and your money is ready to go. Since the majority of sellers prefer a fast closing, you might need to start looking for some other financing alternatives.
As well as this, if you have an unfavorable credit situation or don't have a consistent source of income, it is usually tougher to obtain bank financing, considering the tougher loan criteria banks have introduced lately. So will inadequate funds prevent you from sticking with your dream? Most certainly not, because you always have the Big Beaver hard money loan option.
A hard money home loan in Big Beaver boasts what is perhaps most sought after by real estate investors — a fast closing in as few as two weeks. Also, hard money lenders are capable of doing loans up to 70% LTV of the property value, as calculated by a professional third-party appraiser. With loan rates starting around 10%, hard money real estate loans might appear, at first, to be more pricey when compared with traditional bank financing. But in reality, the lending rate is not as useful a measure for these loans, given that they will never be long-term loans. Short-term loans of several months to a few years are best approached in terms of cost of capital, similar to all other expenses related to a project. When you have resold the house and have made a successful financial gain, you're able to get back this expense from the property — similar to recovering the money spent on the brand-new home appliances that you put in.
Additionally, it isn't difficult to be eligible for a hard money mortgage, regardless if your credit score is not that impressive. Rather than focusing strictly on the applicant's credit score or wages, Big Beaver hard money lenders, who could be a privately owned company or an individual, authorize a loan as a result of evaluating the home value, how easy it will be to market, where it is located, and the probability of recuperating their money in the event of foreclosure. The amount that a borrower can put down beforehand towards the property, how much experience he has in real estate investing, and price range of comparative homes in the same area are various other factors that go into ascertaining a borrower's qualification for a hard money real estate loan.
So should you come across an outstanding and profitable flipping opportunity, rest assured you'll have a hard money lender in Big Beaver, prepared to loan you the money you'll need. Complete the form on this page or call us and let's talk about the property or properties you have in mind.
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