Hard Money Loans in Cedartown
A fantastic buy on a fix and flip property in a very good neighborhood suddenly turns up — seems too good to be true. You may have heard that professional home flippers, such as the husband and wife on HGTV's Flip or Flop, turn an impressive average profit margin near forty to fifty thousand dollars. No need to explain that their rehabbing experience, understanding of hard money loans, expertise in their housing market, and auction skills have been major factors to their success. On the other hand, you're certain that your first class rehab and renovation skills will enable you to do a superb job on this house — in addition, you already have arranged to have one of the premier contractors in the business to work on the job.
But funding is usually a different problem entirely. A standard lending institution, for instance a bank, takes at least 1-2 months to consent to the mortgage and release the money. Since most sellers wish to have a fast closing, you may want to start searching for additional financing options.
On top of this, banks have already been tightening up their lending criteria in recent years, making it difficult for someone to get a typical loan if their credit situation is not flawless or he does not possess a consistent salaried profession. So must you stop trying and forego your desire to get into the real estate market? By no means, due to the fact you could always go the Cedartown hard money loan route to pay for your rehab project.
A hard money home loan in Cedartown provides what is probably most sought after by real estate investors — a quick closing time period of as few as 14 days. Also, hard money lenders can do lending up to 70% LTV of the property or home value, as determined by a qualified third-party evaluation. Some individuals believe hard money real estate loans to be costlier than standard financing, since the interest rates for such loans generally start at 10%. But the time frames of these loans tend to be quite short, making the rate far less significant. When it comes to short-term loans of a few years or less, you should look at them identical to any kind of other expenditure for the project. Once you have turned the home and have made a successful financial gain, you'll be able to recover this expense from the property — the same as recovering the money necessary for the brand-new kitchen appliances that you have installed.
Aside from that, hard money mortgages are easy qualifying, even in the event you posses bad credit. Cedartown hard money lenders don't take on a loan solely based on the borrower's credit score — rather they additionally assess the property or home, its valuation and location, and the property's capability to pay back the loan without the help of the borrower. The amount that a person can put upfront for the house, his past real estate experience, and selling price of comparative homes in the same neighborhood are additional factors that go into analyzing an individual's qualification for a hard money real estate loan.
So should you come across a very good and worthwhile investment opportunity, rest assured you will have a hard money lender in Cedartown, willing to lend you the cash you may need. Submit the contact form on this page or call us to discuss the property or properties you have in mind.
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