Hard Money Loans in Cedar Rapids
There is this amazing possibility for renovating and flipping this nice outdated property or home in a very good part of town and it seems a lot like the deal you have been looking forward to for a long time. Everybody knows that expert professional flippers, along the lines of Tarek and Christina El Moussa from HGTV's reality home flipping show, Fix or Flop, can make an average profit of $40,000 to $50,000 when they flip properties. And without a doubt, they are aided in a major way by their professional knowledge, auction abilities and understanding of hard money loans. That said, you have recently been developing your rehab and renovation skills, have got a contractor arranged and are certain that you're capable of doing a stellar job for this home.
But capital is a separate question altogether. If you approach a regular lending institution, much like a bank for funding, it is more than likely going to take at least thirty to sixty days for the acceptance to be completed and the money to be given out. So if you are anticipating a fast closing, it's important for you to realize that this may cost you weeks, making you lose out on the home.
As well as this, if you have a sub-optimal credit rating or do not have a routine source of income, it usually is more challenging for you to be eligible for bank financing, seeing the tighter loan criteria banks have introduced recently. So do you have to give up and forego your aspiration to get into fix and flips? Most certainly not, seeing as you also have the Cedar Rapids hard money loan option.
A hard money home loan in Cedar Rapids boasts what's probably most desired by real estate investors — a very fast closing in as little as a few weeks. Additionally, loans can be done for up to 70% loan-to-value of the as-is home value, as determined by a professional appraiser. At first, hard money real estate loans, with starting interest rates of 10%, could be seen as higher in price than bank lending options. But the time frames of these loans are relatively shorter, which makes the rate far less significant. When it comes to short-term loans of one or two years or less, you should think of them much like you would other expenses for your project. And once you have sold the home, recouping this expense is identical to recuperating the expense for all the kitchen and bath updates you did.
What's more, it is easy to qualify for a hard money mortgage, regardless of whether your credit score is not that impressive. Cedar Rapids hard money lenders do not authorize a loan strictly according to the borrower's credit score — rather they will analyze the property or home, its value and location, and the home's capability to pay back the loan by itself. Additional factors that have an impact on an applicant's approval for a hard money real estate loan can include how much he can put into a down payment, his previous experience being a real estate investor, and price of comparative, recently sold residences in the area.
Searching for a hard money lender in Cedar Rapids to fund your real estate project is not hard, so long as the opportunity in front of you is promising and offers the right prospect for returns. Enter your info into the form or get in touch with us via phone to discuss your property or properties.
A loan specialist will be in touch shortly