Hard Money Loans in Chandler
Imagine you've stumbled upon this really great bargain on a fix and flip property you found in a great neighborhood, and you are either an experienced real estate investor or a newbie who is looking to try out flipping houses. You've probably heard that veteran property flippers, much like the married couple on HGTV's Flip or Flop, enjoy a remarkable average return close to forty to fifty thousand dollars. No need to explain that their past experiences rehabbing, knowledge of hard money loans, familiarity with the housing market, and auction talents have been major factors to their results. On the other hand, you're assured that your impressive rehab and renovation skills will help you do a superb job on this project — what's more, you have already arranged to have one of the best contractors in the business to take care of the project.
But where can you find the necessary financing for flipping? Should you opt for a regular loan from the bank, you will have to wait approximately one to two months before the loan is authorized and the funds are ready. So if you are hoping for a fast closing, it is important to understand that this will set you back by a couple weeks, causing you to lose out on the home.
Furthermore, if you have a less-than-perfect credit rating or don't receive a consistent income source, it is normally more challenging for you to qualify for bank financing, considering the stricter loan guidelines banks have introduced recently. So will inadequate funding prevent you from pursuing your ambitions? Not at all, especially while Chandler hard money loans can help you achieve great things in real estate.
A hard money home loan in Chandler offers you what's considered vital to many real estate deals — a fast closing of only a 2-3 weeks and at many times less. Further, loan amounts can be made up to 70% loan-to-value of the as-is value, as calculated by a licensed appraiser. With loan rates starting off near 10%, hard money real estate loans may appear, initially, to be higher priced compared to traditional bank financing. But the lengths of these loans tend to be quite shorter, making the interest rate less important. The cost of such short-term loans should be considered on par with any other financial outlay that you might encounter during the project. Right after you remodel and unload the house, recuperating this expense is no different than recovering the expense for home appliances you put in the property.
What's more, it is simple to be eligible for a hard money mortgage, even in the event your credit score is not that impressive. Instead of focusing primarily on the borrower's credit score or wages, Chandler hard money lenders, who can be a privately owned company or an individual, approve a loan as a result of assessing the property value, ease of marketability, where it is located, and the probability of recovering their money in case of foreclosure. Several other variables that impact a person's eligibility for a hard money real estate loan can include how much money he is in a position to put into a down payment, his former experience as a real estate investor, and price range of comparative, recently sold homes in the vicinity.
Finding a hard money lender in Chandler to fund your real estate project is not very hard, assuming that the opportunity before you is promising and has the right potential for returns. Fill out the contact form or get in touch with us via phone to discuss your project.
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