Hard Money Loans in Blaine
Suppose that you've encountered this really great deal on a fix and flip property located in an ideal neighborhood, and you happen to be either a seasoned real estate investor or a first-timer who wants to try out flipping houses. Everyone knows that skilled professional flippers, like Tarek and Christina El Moussa who star in HGTV's reality flipping series, Fix or Flop, can make an average profit of forty to fifty thousand dollars on their home projects. Undoubtedly, you also know that their success can be credited to the fact that they are experts, are proficient in hard money loans, they know the marketplace really well and in addition, they know how to work an auction for getting an appropriate deal. Having said that, you have recently been developing your rehab and remodeling knowledge, have a general contractor ready for the project and are certain that you can do a bang up job for this home.
But capital is often a different problem entirely. A typical lender, for instance a bank, takes at the very least 1 to 2 months to authorize the financing and hand over the capital. Considering that the home owners want a fast closing, that does not appear to be a great idea to you at all.
With banks bringing in tougher loan requirements in the recent past, it is much harder for a self-employed person to get a home loan, especially when his credit situation is not perfect. So will a shortage of funding prevent you from following your dream? Most certainly not, given that you also have the Blaine hard money loan option.
A hard money home loan in Blaine provides what's perhaps most crucial to real estate investors — a fast closing in as few as two weeks. Also, hard money lenders frequently agree to lending up to 70% LTV of the property or home's valuation, as determined by a professional third-party evaluation. Some individuals regard hard money real estate loans to be higher in price than ordinary financing, because the interest rates for such loans normally start out at 10%. But usually, the rate of interest isn't as useful a measure for these loans, given that they will never be long-term loans. The cost of such short-term loans ought to be looked at on par with every other expenditure that you might encounter in the course of the project. Right after you fix up and unload the house, recuperating this expense is just like recouping the expense for new kitchen appliances you placed into the property.
In addition, even an individual with poor credit will be able to be eligible for a hard money mortgage. The borrower's credit score isn't the sole determining factor for Blaine hard money lenders — in addition, they examine the home, its market valuation, its location, and its potential to earn back their financial commitment if things do not go as intended. Adding to that, if the person can demonstrate prior experience in similar real estate endeavors, can place down cash for a down payment, and the cost of similar homes in the area works in his favor, he will have a very good likelihood of being approved to get a hard money real estate loan.
Finding a hard money lender in Blaine to fund your fix and flip endeavor is not difficult, so long as the opportunity that lies before you is promising and has a good prospect for returns. Complete the contact form or call us and let's discuss the property or properties you have in mind.
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