Hard Money Loans in Bowling Green
Suppose you've stumbled upon this truly good bargain for a fix and flip property located in a great location, and you are either a skilled real estate investor or a newbie who is looking to try out flipping homes. Everybody knows that skilled professional flippers, along the lines of Tarek and Christina El Moussa from HGTV's reality flipping program, Fix or Flop, can readily make an average profit margin of forty to fifty thousand dollars in their rehab business. And without a doubt, they are helped in a major way due to their professional knowledge, auction skills and understanding of hard money loans. Still, your rehab and renovation knowledge isn't that bad either — in any case, you have already located the right building contractor to take on the project.
But how can real estate investors get money? A traditional lending institution, say for example a bank, takes at a minimum 1 to 2 months to approve the loan and hand over the funds. With the home owners looking for a fast closing, that doesn't appear to be a great idea to you whatsoever.
On top of this, banks have already been tightening up their lending standards in recent years, making it difficult for a person to receive a typical home loan if their credit score is not perfect or he doesn't have a consistent salaried profession. So should you give up and abandon your desire to get into the real estate market? Not at all, especially while Bowling Green hard money loans can help you achieve great things in real estate.
A hard money home loan in Bowling Green boasts what's perhaps most important to real estate investors — a very fast closing time of as little as 2 weeks. In addition, the LTV value can reach up to 70% of the place's valuation, as evaluated by a competent appraiser. Some people consider hard money real estate loans to be higher priced than regular loans, considering lending rates for these loans generally start at 10%. But usually, the lending rate is not as relevant for these loans, since they are not long-term financing. 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 all other expenditures associated with a project. When you have sold the home and have made a good financial gain, you'll be able to reclaim this expense from the property — just like recouping the cost of brand-new kitchen appliances that you installed.
Also, it is easy to be eligible for a a hard money mortgage, even if your credit rating is not that impressive. The borrower's credit score isn't the exclusive determining factor for Bowling Green hard money lenders — additionally, they examine the piece of real estate, its market value, where it is located, and its ability to earn back their financial commitment if things do not work out as intended. Other variables that impact a customer's eligibility for a hard money real estate loan include the amount he is able to put into a down payment, his previous experience being a real estate investor, and price range of similar, fairly recently sold homes nearby.
Searching for a hard money lender in Bowling Green to finance your flipping business is not very hard, assuming that the opportunity that lies ahead of you is promising and possesses the right potential for returns. Submit the contact form on this page or call us and let's discuss the property or properties you have in mind.
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