Hard Money Loans in Centennial
An outstanding buy on a fix and flip property located in a nice neighborhood shows up out of the blue — sounds so good that it's difficult to believe. Expert property flippers, similar to the young married couple on Flip or Flop, HGTV's reality flipping show, are capable of hauling in a profit of forty to fifty grand on most projects. Without question, their past experiences rehabbing, knowledge of hard money loans, familiarity with the housing market, and auction skills have had a big part in their successes. Still, your rehab and remodeling knowledge isn't bad either — in any case, you have already found a good general contractor to handle the home.
But where precisely can real estate investors find capital? When you apply for a normal loan from the bank, you will need to wait around roughly one to two months up until the financing is approved and the money is accessible. So if you're looking for a fast closing, you must understand that this could set you back by a few weeks, making you miss out on the opportunity.
With banks establishing harder loan criteria in the past few years, it is harder for a self-employed person to find a home loan, particularly if his credit circumstances are not optimal. So must you give up and forego your dream to embark into fix and flips? By no means, because you could always use the Centennial hard money loan approach to finance your flipping project.
A hard money home loan in Centennial gives you what's regarded as essential to many real estate sales — a fast closing of only a couple of weeks and sometimes less. Furthermore, hard money lenders frequently agree to loans up to 70% LTV of the property or home value, as estimated by a credentialed third-party appraiser. On the surface, hard money real estate loans, with starting lending rates of 10%, could be seen as more costly than bank lending products. But usually, the interest rate is not as useful a measure for these loans, because they are not long-term loans. The price of such short-term loans should be evaluated much like every other expenditure that you would have to meet pertaining to the project. And when you've turned the property, recovering this expense is identical to recouping the expense for all the bathroom or other improvements you did.
Also, it is easy to be eligible for a a hard money mortgage, even if your credit rating is not that great. The customer's credit score will not be the primary deciding factor for Centennial hard money lenders — additionally, they look at the house, its market valuation, its location, and its ability to bring back their financial commitment if things do not go as planned. Several other criteria that impact a customer'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 former experience being a real estate investor, and selling price of comparable, just recently sold properties in the area.
So any time you run into a good and profitable investment opportunity, rest assured you will have a hard money lender in Centennial, ready to lend you the capital you may need. Fill out the form or give us a call to talk about your property.
A loan specialist will be in touch shortly