Hard Money Loans in Bushnell
An outstanding buy on a fix and flip opportunity located in a very good subdivision shows up out of the blue — seems so good that it's hard to believe. Professional home flippers, such as the young couple on Flip or Flop, HGTV's reality flipping program, are able to earn a profit of $40-$50k on the majority of projects. Of course, you also understand that their results can be attributed to the simple fact that they're professionals, are knowledgeable in hard money loans, they know market trends quite well and they also are good at working an auction to purchase their homes at a good deal. However, you are convinced that your first class rehab and remodeling skills will assist you to do a great job on the property — in addition, you've already lined up one of the finest contractors in town to take on the job.
But how can you find the needed capital for home flipping? A traditional lending institution, for instance a bank, takes a minimum of 1-2 months to approve the loan and provide the cash. Since most sellers favor a fast closing, you may want to begin looking for additional financing alternatives.
With banks adding more challenging loan requirements in recent years, it has become harder for a self-employed individual to obtain a mortgage loan, especially if his credit circumstances are not flawless. So does that mean you are without an option, but to drop your aspiration of getting into home flipping? Most certainly not, because you always have the Bushnell hard money loan option.
If you decide to apply for a hard money home loan in Bushnell, you will get what's probably most important to real estate offers across the country — a quick closing of around two weeks. And additionally, loans can be done for up to 70% loan-to-value of the "as is" house value, as established by a licensed appraiser. A number of people regard hard money real estate loans to be higher in price than standard loans, because the interest rates for these loans normally start off at 10%. But when you consider these loans are not long-term home loans, the interest rate may be misleading. Short-term loans of several months to a handful of years are best looked at as cost of capital, very much like every other financial outlay involved with a project. And when you have sold the house, recovering this expense is identical to recouping the expense for all the kitchen and bath upgrades you did.
Moreover, even a person with poor credit can easily be eligible for a hard money mortgage. Bushnell hard money lenders do not approve a loan strictly based on the applicant's credit score — rather they will look at the property, where it is located and how much it is worth, and the home's ability to pay back the financing without the assistance of the borrower. Additional factors that impact a customer's acceptance for a hard money real estate loan can include the amount he can put into a down payment, his former experience being a real estate investor, and selling price of comparable, just recently sold properties nearby.
Locating a hard money lender in Bushnell to fund your real estate project is not difficult, provided that the opportunity that lies ahead of you is promising and possesses the right potential for returns. Submit the form on this page or call us and let's discuss your property.
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