Hard Money Loans in Billings
Suppose you've stumbled upon this really great deal on a fix and flip property you found in a great location, and you happen to be either a seasoned real estate investor or a newbie who wants to try his hand at flipping. You may have heard that competent house flippers, such as the husband and wife on HGTV's Flip or Flop, turn an impressive average return of around $40,000 – $50,000. And indeed, they are aided in a big way as a result of their professional know-how, auction expertise and understanding of hard money loans. However, you're assured that your superb rehab and remodeling knowledge will help you do a quality job for this project — furthermore, you already have arranged to have one of the best building contractors in town to handle this project.
But funding is often a separate problem altogether. A conventional lender, say for example a bank, takes at least 1-2 months to consent to the financing and provide the cash. With all the sellers seeking a fast closing, that does not seem like a wise idea to you at all.
Furthermore, in case you have a less-than-perfect credit rating or don't receive a regular source of income, it usually is more challenging for you to be eligible for bank financing, with the tighter loan criteria banks have issued recently. So does this leave you with no option, but to drop your aspiration to venture into the fix and flip business? By no means, especially while Billings hard money loans can help you accomplish great things in the real estate world.
Should you apply for a hard money home loan in Billings, you'll get what is perhaps most important to real estate offers across the country — a fast closing of around a couple weeks. Also, hard money lenders will often consent to funding up to 70% LTV of the property's valuation, as calculated by a licensed third-party evaluator. With the rates starting off near 10%, hard money real estate loans might seem, at first glance, to be more costly when compared with conventional bank lending products. But the term lengths for these loans are relatively short, which means the rate is much less important. Short-term loans of a couple of months to a handful of years are best looked at in terms of cost of capital, the same as every other expense involved with a project. Right after you remodel and sell the home, recouping this expense is just like recuperating the one for stainless steel appliances you put in the house.
What's more, it is simple to obtain a hard money mortgage, even when your credit score is not that extraordinary. Instead of focusing solely on the person's credit score or wages, Billings hard money lenders, who could be a private company or an individual person, approve a loan as a result of evaluating the home value, how easy it will be to market, where it is located, and the possibility of recuperating their money in the event of foreclosure. Other variables that influence a borrower's approval for a hard money real estate loan can include the amount he is in a position to put into a down payment, his previous experience as a real estate investor, and price range of comparable, fairly recently sold residences nearby.
So should you run into a very good and worthwhile flipping opportunity, be assured you'll have a hard money lender in Billings, prepared to lend you the cash you will need. Fill out the form or call us and let's talk about your property or properties.
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