Hard Money Loans in Cardington
You discovered this amazing opportunity to rehab and flip this nice old house in a good part of town and it seems like the deal you've been looking forward to for a long time. Everyone knows that expert professional flippers, such as Tarek and Christina El Moussa from HGTV's reality flipping series, Fix or Flop, can readily turn an average profit margin of $40,000 to $50,000 when they flip properties. And without a doubt, they are helped in a major way by their professional knowledge, auction abilities and familiarity with hard money loans. However, you're certain that your first class rehab and renovation abilities will enable you to do a superb job on the property — additionally, you already have lined up one of the finest building contractors in town to work on the job.
But where do real estate investors get financing? A conventional lending institution, say for example a bank, takes at least one to two months to approve the financing and hand over the cash. Since most home owners prefer a fast closing, you may have to start seeking out some other funding options.
With banks bringing in more challenging loan criteria in the past several years, it is now tougher for a self-employed individual to get a mortgage loan, especially when his credit circumstances are not perfect. So must you give up and forego your aspiration to embark into fix and flips? Certainly not, given that you always have the Cardington hard money loan option.
A hard money home loan in Cardington can provide what is viewed as imperative to most real estate deals — a fast closing of just a 2-3 weeks and at times less. Furthermore, hard money lenders will often consent to funding up to 70% LTV of the home value, as established by a professional third-party appraiser. At first, hard money real estate loans, with starting lending rates of 10%, seem to be higher priced than bank financing. But if you understand these loans are not long-term loans, the interest rate tends to be misleading. The cost of such short-term loans ought to be looked at much like any other expenditure that you will have to meet for the project. Once you've turned the property or home and have made a successful return, you're able to recover this expense from the property or home — very much like recuperating the money spent on the brand-new home appliances that you have installed.
In addition, even individuals with bad credit can still be eligible for a hard money mortgage. Rather than focusing exclusively on the applicant's credit score or source of income, Cardington hard money lenders, who can be a privately owned company or an individual person, say yes to a loan as a result of evaluating the property value, its marketability, its location, and the likelihood of recouping their money in case they have to foreclose the loan. On top of this, if the applicant can demonstrate prior experience in equivalent real estate ventures, can put down money towards the down payment, and the price of comparable houses in the area works to his benefit, he will have a really good likelihood of qualifying to get a hard money real estate loan.
Locating a hard money lender in Cardington to fund your fix and flip endeavor is not very hard, provided that the opportunity that lies before you is promising and has a strong potential for returns. Enter your info into the contact form or get in touch with us via phone to discuss the property you have in mind.
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