Hard Money Loans in Calhoun
A remarkable buy on a fix and flip property in a very good subdivision all of a sudden shows up — sounds too good to be true. Expert house flippers, like the young couple on Flip or Flop, HGTV's reality flipping series, are capable of bringing in a gain of forty to fifty grand for most homes. Naturally, you also understand that their successes can be attributed to the fact that they are industry experts, are proficient in hard money loans, they know market trends really well and they also are good at working an auction to purchase their houses at a good deal. Nonetheless, your rehab and renovation skills aren't bad either — aside from that, you have already found an ideal general contractor to handle this home.
But how do you find the necessary funding for home flipping? When you meet with a customary lender, like a bank for financing, it's in all likelihood going to take a minimum of 30-60 days for the approval to be completed and the funds to be dispersed. Considering that all the sellers want a fast closing, that does not appear like a good option to you at all.
With banks bringing in more challenging loan requirements in the past few years, it has become harder for a self-employed person to get a home loan, especially when his credit circumstances are not flawless. So does this mean you are without an option, but to drop your dream of venturing into home flipping? Certainly not, considering that you could always go the Calhoun hard money loan route to fund your rehab project.
A hard money home loan in Calhoun boasts what is perhaps most essential to real estate investors — a very fast closing time period of as little as 14 days. Additionally, financing is made up to 70% loan-to-value of the "as is" value, as established by a licensed appraiser. Some individuals regard hard money real estate loans to be more expensive than customary financing, since the lending rates for such loans usually start off at 10%. But in reality, the rate of interest is not as useful a measure for these loans, given that they aren't long-term loans. When it comes to short-term loans of 1 or 2 years or less, you should consider them much like you would other expenses for the project. When you have sold the property and have made a successful profit, you can reclaim this expense from the property or home — very much like recouping the money necessary for the brand-new home appliances that you have put in.
What's more, it isn't difficult to be eligible for a hard money mortgage, even if your credit rating is not that superb. Calhoun hard money lenders do not approve a loan strictly according to the borrower's credit score — rather they additionally evaluate the home, where it is located and how much it is worth, and the property's capacity to pay back the loan independent of the borrower. Additional criteria that affect an applicant's acceptance for a hard money real estate loan can include how much money he can put into a down payment, his former experience being a real estate investor, and price of similar, fairly recently sold homes nearby.
Locating a hard money lender in Calhoun to finance your renovation project is not very hard, so long as the opportunity in front of you is promising and has a strong prospect for returns. Submit the form on this page or give us a call to discuss the project you have in mind.
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