Hard Money Loans in Brighton
A fabulous deal on a fix and flip property in a good neighborhood suddenly turns up — sounds so good that it's difficult to believe. A majority of people know that knowledgeable professional flippers, like Tarek and Christina El Moussa who do HGTV's reality flipping series, Fix or Flop, can readily generate a typical profit margin of $40,000 to $50,000 when they flip properties. Without question, their past experiences rehabbing, knowledge of hard money loans, familiarity with the market, and auction skills have been large factors to their successes. Still, your rehab and renovation knowledge isn't bad either — in any case, you've already identified a suitable general contractor to handle the project.
But capital is often a separate question entirely. When you apply for a conventional loan from the bank, you will wind up waiting approximately 4-8 weeks until eventually the mortgage is authorized and the money is ready to go. Because most sellers give preference to a fast closing, you might want to begin looking for additional financing alternatives.
On top of this, banks have already been tightening their lending requirements in recent years, rendering it more challenging for people to get a conventional home loan if their credit rating is not flawless or he doesn't have a regular salaried job. So does this leave you with no option, but to give up your dream of venturing into flipping? By no means, particularly when Brighton hard money loans can help you realize great things in the real estate world.
A hard money home loan in Brighton provides what's possibly most important to real estate investors — a very fast closing time period of as little as 14 days. Plus, the LTV value can range up to 70% of the home value, as evaluated by a certified appraiser. Some people believe hard money real estate loans to be costlier than ordinary loans, since the interest rates for such loans often start out at 10%. But usually, the rate of interest is not as useful a measure for these loans, because they aren't long-term financing. When it comes to short-term loans of one or two years or less, you should think about them the same as you might for any other expense for your project. Once you have turned the house and have made a good return, you'll be able to get back this expense from the property or home — just like recouping the money spent on the brand-new home appliances that you installed.
In addition, even someone with bad credit will be able to be eligible for a hard money mortgage. As an alternative for focusing solely on the borrower's credit score or net income, Brighton hard money lenders, who can be a privately owned company or an individual person, approve a loan as a result of analyzing the property value, how easy it will be to market, its location, and the possibility of recouping their money in case they have to foreclose the loan. The total amount that an individual can put upfront towards the home, how much experience he has in real estate investing, and price range of comparative properties in the vicinity are additional factors that go into ascertaining a borrower's eligibility for a hard money real estate loan.
So should you come across a very good and lucrative flipping opportunity, feel comfortable knowing you will have a hard money lender in Brighton, willing to loan you the funds you will need. Submit the contact form on this page or get in touch with us via phone to talk about the project you have in mind.
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