Hard Money Loans in Cape Girardeau
Imagine you've come across this excellent bargain for a fix and flip property located in an ideal neighborhood, and you happen to be either a seasoned real estate investor or a newbie who wants to try his hand at flipping. Expert property flippers, such as the young couple on Flip or Flop, HGTV's reality flipping series, are able to bring in a profit of forty to fifty grand on the majority of projects. It goes without saying their rehabbing experience, understanding of hard money loans, expertise in their market, and auction skills have been large factors to their results. Nevertheless, you're certain that your superb rehab and remodeling skills will enable you to do a superb job on this home — additionally, you already have lined up one of the premier contractors in the business to handle this job.
But where do you obtain the needed capital for flipping? A conventional lender, like for example a bank, takes at least 1 to 2 months to approve the loan and release the funds. So if you will be expecting a fast closing, you must understand that this may cost you a few weeks, making you miss out on the opportunity.
Furthermore, if you have a sub-optimal credit situation or do not receive a consistent source of income, it is usually harder for you to obtain bank financing, seeing the tougher loan guidelines banks have issued as of late. So must you admit defeat and abandon your ambition to venture off into fix and flips? Absolutely not, seeing as you always have the Cape Girardeau hard money loan option.
If you decide to obtain a hard money home loan in Cape Girardeau, you will get what's possibly most essential to real estate negotiations throughout the country — a very fast closing of about a couple weeks. What's more, the LTV value can reach up to 70% of the home's valuation, as estimated by a credentialed appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, could be seen as costlier than bank lending options. But in reality, the rate of interest is not as relevant for these loans, since they are not long-term loans. When it comes to short-term loans of one or two years or even less, you should think of them similar to every other expenditure for the project. And once you've flipped the property, recouping this expense is comparable to recuperating the expense for the bathroom or other upgrades you did.
Apart from this, hard money mortgages are not difficult to qualify for, regardless if you have got a bad credit rating. Cape Girardeau hard money lenders do not take on a loan exclusively on the basis of the borrower's credit score — instead they will evaluate the property or home, its location and value, and the home's ability to pay back the financing by itself. Additional variables that influence a person's eligibility for a hard money real estate loan can include what amount of money he is able to put towards a down payment, his prior experience being a real estate investor, and price of comparable, just recently sold residences in the vicinity.
So if you have stumbled on a wonderful fixer-upper with a huge probability of returns, you have also discovered a hard money lender in Cape Girardeau who's happy to provide financing for your rehab project. Enter your info into the contact form on this page or get in touch with us via phone to discuss your property.
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