Hard Money Loans in Cedar Falls
There's this amazing opportunity to renovate and flip this wonderful old home in a fantastic location and it seems a lot like the deal you have been anticipating for quite a while. Professional residential home flippers, similar to the young married couple on Flip or Flop, HGTV's reality flipping program, are able to bring in a profit of $40-$50k on average. And without a doubt, they are helped in a major way due to their professional knowledge, auction expertise and familiarity with hard money loans. On the other hand, you're assured that your superb rehab and renovation knowledge will help you do a superb job for this property — additionally, you've already arranged to have one of the finest building contractors in town to handle this job.
But how can real estate investors get money? A standard lender, like for example a bank, takes at a minimum one to two months to approve the loan and deliver the capital. So if you will be anticipating a fast closing, you need to recognize that this could set you back by a couple weeks, causing you to lose out on the opportunity.
With banks establishing tougher loan criteria in recent times, it has become tougher for a self-employed individual to get a mortgage loan, particularly if his credit circumstances are not flawless. So must you give up and forego your desire to get into fix and flips? Not at all, particularly when Cedar Falls hard money loans can help you accomplish many amazing things in the real estate world.
A hard money home loan in Cedar Falls offers you what's deemed crucial to most real estate deals — a very fast closing of only a couple of weeks and sometimes less. Additionally, financing is made up to 70% loan-to-value of the "as is" house's valuation, as calculated by a qualified appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, appear to be costlier than bank loans. But once you understand these loans are not long-term loans, the rate of interest tends to be misleading. The price tag on such short-term loans ought to be evaluated on par with every other expense that you would encounter during the project. Right after you rehab and resell the house, recouping this expense is just like recovering the money you spent for stainless steel appliances you placed into the place.
Additionally, it's easy to be eligible for a hard money mortgage, regardless if your credit situation is not that superb. Cedar Falls hard money lenders don't take on a loan exclusively judging by the customer's credit score — instead they will assess the home, its location and value, and the home's capacity to pay back the loan by itself. Additional criteria that affect a person's approval for a hard money real estate loan include how much he can put into a down payment, his prior experience as a real estate investor, and price range of comparative, fairly recently sold properties nearby.
Locating a hard money lender in Cedar Falls to finance your fix and flip endeavor is not very challenging, as long as the opportunity that lies before you is promising and has a strong potential for returns. Submit the form or call us to talk about your project.
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