Hard Money Loans in Centerton
There's this outstanding opportunity to rehab and flip this wonderful outdated condo in a fantastic part of town and it looks like the deal you've been expecting for quite a while. You've probably heard that professional property flippers, much like the married couple on HGTV's Flip or Flop, have an impressive average profit near $40,000 – $50,000. Of course, you also realize that their success are due to the fact that they are industry experts, are knowledgeable in hard money loans, they understand the marketplace quite well and they also are good at working an auction for getting an appropriate deal. Nonetheless, your rehab and renovation skills aren't that bad either — aside from that, you have already located a suitable licensed contractor to handle this project.
But how can you obtain the necessary financing for home flipping? A traditional lender, like for example a bank, takes at least one to two months to authorize the mortgage and release the money. So if you are looking for a fast closing, you have to understand or know that this could cost you weeks, causing you to miss out on the opportunity.
Furthermore, if you have a sub-optimal credit situation or don't receive a routine income source, it may be more challenging to obtain bank financing, seeing the tighter loan requirements banks have issued recently. So should you stop trying and forego your dream to embark into the real estate market? Absolutely not, because you also have the Centerton hard money loan alternative.
A hard money home loan in Centerton gives you what's regarded as imperative to most real estate deals — a quick closing of just a couple of weeks and more often than not even less. Furthermore, hard money lenders can approve loans up to 70% LTV of the home value, as assessed by a professional third-party evaluator. With rates starting around 10%, hard money real estate loans might appear, at first glance, to be more expensive when compared with conventional bank lending products. But once you understand these loans are not long-term mortgage loans, the rate may be misleading. Short-term loans of a couple of months to a handful of years are best approached as cost of capital, the same as every other expenditure in connection with a project. After you fix up and unload the home, recovering this expense is the same as recuperating the money you spent for home appliances you installed in the property.
Besides, hard money mortgages are not difficult to qualify for, even when you posses a bad credit rating. As an alternative for focusing entirely on the applicant's credit score or wages, Centerton hard money lenders, who may be a private company or an individual, approve a loan as a result of evaluating the home value, how easy it will be to market, its location, and the possibility of recovering their money in case they have to foreclose the loan. Additional factors that influence an applicant's approval for a hard money real estate loan include how much he is in a position to put towards a down payment, his former experience being a real estate investor, and price of comparable, just recently sold residences in the area.
So in the event you come across an outstanding and profitable flipping opportunity, relax knowing you will have a hard money lender in Centerton, prepared to loan you the money you will need. Enter your info into the contact form on this page or give us a call to talk about the project you have in mind.
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