Hard Money Loans in Charles Town
Imagine you've encountered this really great deal for a fix and flip property located in a terrific location, and you are either an experienced real estate investor or a newbie who hopes to try his hand at flipping. A majority of people know that capable professional flippers, like Tarek and Christina El Moussa from HGTV's reality flipping show, Fix or Flop, are able to make a typical profit margin of $40,000 to $50,000 on their flips. And yes, they are aided in a big way via their professional experience, auction abilities and understanding of hard money loans. With that being said, you've recently been cultivating your rehab and remodeling skills, have a very good contractor ready to go and are certain that you will be able to do an impressive job for this house.
But how do you find the necessary funding for home flipping? If you meet with a common lending institution, such as a bank for financing, it can take, as a minimum, 30-60 days for the approval to be completed and your funds to be furnished. So if you happen to be wishing for a fast closing, it is important you recognize that this may cost you a couple of weeks, causing you to lose out on the opportunity.
On top of this, banks have been tightening up their lending standards as of late, making it hard for people to get a regular home loan if their credit circumstances are not flawless or he does not possess a consistent salaried occupation. So will a lack of financing keep you from pursuing your aspirations? Most certainly not, given that you also have the Charles Town hard money loan alternative.
A hard money home loan in Charles Town provides what's deemed essential to many real estate deals — a fast closing of only a few weeks and at times less. And additionally, loans can be done for up to 70% loan-to-value of the as-is property's valuation, as deemed by a professional appraiser. Some individuals regard hard money real estate loans to be more expensive than standard loans, considering interest rates of such loans ordinarily start out at 10%. But in reality, the interest rate isn't as pertinent for these loans, because they will never be long-term loans. The price tag on such short-term loans should be evaluated much like every other expense that you would encounter in the course of the project. After you remodel and sell the house, recovering this expense is just like recouping the one for home appliances you put in the property.
Moreover, even someone with low credit can still be eligible for a hard money mortgage. The borrower's credit score will not be the single deciding factor for Charles Town hard money lenders — they also examine the home, how much it is worth, where it is located, and its ability to return their financial commitment if things do not go as planned. On top of that, if the person can demonstrate past experience in comparable real estate ventures, can place down money for a down payment, and the price of similar properties in the vicinity works to his benefit, he has a good shot of being eligible to obtain a hard money real estate loan.
Searching for a hard money lender in Charles Town to finance your flipping business is not hard, so long as the opportunity that lies before you is promising and offers a strong potential for returns. Fill out the contact form or call us to discuss your property or properties.
A loan specialist will be in touch shortly