Hard Money Loans in Bowling Green
A fantastic buy on a fix and flip property located in an excellent neighborhood suddenly shows up — seems too good to be true. Professional residential home flippers, much like the young couple on Flip or Flop, HGTV's reality flipping show, are capable of generating a profit of $40-$50k on a regular basis. And sure, they are aided in a big way due to their professional know-how, auction expertise and understanding of hard money loans. Nonetheless, your rehab and remodeling knowledge isn't that bad either — in any case, you've already identified a suitable building contractor to take on this project.
But how can you get the necessary funding for home flipping? Should you opt for a regular loan from the bank, you will wind up waiting around somewhere around 1 to 2 months up until the time the financing is authorized and the money is available. So if you're anticipating a fast closing, you need to be aware that this may cost you a couple weeks, causing you to miss out on the sale.
To add to it, banks have been tightening their lending criteria in recent years, rendering it more hard for a person to receive a regular home loan if their credit circumstances are not flawless or he doesn't have a consistent salaried job. So must you admit defeat and abandon your desire to venture into the real estate market? Never, considering that you could always use the Bowling Green hard money loan approach to finance your flipping project.
When you apply for a hard money home loan in Bowling Green, you have access to what is perhaps most vital to real estate offers throughout the country — a very fast closing of approximately 2 weeks. Aside from that, loan amounts can be done for up to 70% loan-to-value of the as-is house value, as determined by a qualified appraiser. On the surface, hard money real estate loans, with starting lending rates of 10%, appear to be more pricey than bank loans. But in reality, the interest rate isn't as relevant for these loans, since they are not long-term loans. Short-term loans of several months to a handful of years are best thought of in terms of cost of capital, very much like every other expenditure involved with a project. Once you've turned the home and have made a positive gain, you can recoup this expense from the property or home — very much like recouping the money spent on the brand-new appliances for the kitchen that you have installed.
In addition, even an individual with weak credit can still qualify for a hard money mortgage. The applicant's credit score will not be the lone deciding factor for Bowling Green hard money lenders — they also consider the house, its market valuation, its location, and its ability to earn back their financial commitment if everything does not go as planned. Adding to that, if the individual can demonstrate past experience in equivalent real estate projects, can put down money for the down payment, and the price of comparable properties in the vicinity works to his benefit, he will have a really good chance of being approved to obtain a hard money real estate loan.
So should you come across an outstanding and lucrative investment opportunity, feel comfortable knowing you'll have a hard money lender in Bowling Green, willing to lend you the capital you'll need. Enter your info into the contact form on this page or get in touch with us via phone and let's discuss your property.
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