Hard Money Loans in Bluffton
You discovered this outstanding opportunity to fix and flip this wonderful outdated property in a very good area and it looks a lot like the one you have been expecting for quite a while. You've heard that professional home flippers, much like the couple on HGTV's Flip or Flop, turn a remarkable average profit of around forty to fifty thousand dollars. And without a doubt, they are aided in a major way via their professional know-how, auction expertise and familiarity with hard money loans. Nonetheless, your rehab and renovation skills aren't that bad either — aside from that, you have already located a good contractor to start the project.
But how can real estate investors find financing? When you opt for a regular loan via a bank, you will end up waiting around roughly 1 to 2 months up until the time the loan is approved and your money is accessible. Since most home owners wish to have a fast closing, you may want to start seeking out other funding options.
With banks establishing more challenging loan requirements in the last few years, it has become more challenging for a self-employed individual to get a home loan, especially when his credit rating is not perfect. So must you give up and abandon your ambition to get into fix and flips? Certainly not, given that you always have the Bluffton hard money loan alternative.
A hard money home loan in Bluffton gives you what is possibly most important to real estate investors — a very fast closing in as few as 2 weeks. And additionally, loans are made up to 70% loan-to-value of the "as is" house's valuation, as calculated by a licensed appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, appear to be more pricey than bank lending options. But usually, the lending rate is not as pertinent for these loans, since 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, very much like every other expense associated with a project. After you rehab and sell off the home, recouping this expense is the same as recovering the expense for home appliances you installed in the home.
What's more, it isn't difficult to be eligible for a hard money mortgage, even if your credit score is not that impressive. The applicant's credit score will not be the primary determining factor for Bluffton hard money lenders — additionally, they consider the property, its market value, its location, and its potential to return their financial commitment if things should not go as planned. Several other variables that have an impact on a customer's approval for a hard money real estate loan include the amount he is able to put into a down payment, his former experience as a real estate investor, and selling price of comparative, recently sold properties nearby.
Locating a hard money lender in Bluffton to finance your real estate project is not very challenging, provided that the opportunity in front of you is promising and possesses a strong prospect for returns. Complete the contact form on this page or give us a call to discuss the property you have in mind.
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