Hard Money Loans in Charleston
There is this outstanding possibility for renovating and flipping this nice out of date condo in a very good location and it looks a lot like the deal you've been eagerly waiting on for a long time. Professional home flippers, similar to the young married couple on Flip or Flop, HGTV's reality flipping program, are capable of earning a gain of $40-$50k on a regular basis. Naturally, you also realize that their great results can be attributed to the simple fact that they are professionals, are proficient in hard money loans, they understand the market quite well and they also know how to work an auction to purchase their properties at a good price. That said, you have recently been developing your rehab and renovation knowledge, have a very good general contractor lined up and are certain that you will be able to do a bang up job on this property.
But where do real estate investors find funding? When you get in touch with a common lending institution, such as a bank for a mortgage loan, it is more than likely going to take, as a minimum, thirty to sixty days for the approval to come through and the funds to be sent out. So if you're hoping for a fast closing, you have to understand that this may cost you a couple of weeks, making you lose out on the house.
On top of this, banks have already been tightening their lending criteria in recent times, rendering it more challenging for a person to obtain a regular loan if their credit situation is not flawless or he is lacking a consistent salaried occupation. So does that mean you are without an option, but to drop your aspiration of venturing into flipping? Certainly not, seeing as you also have the Charleston hard money loan alternative.
A hard money home loan in Charleston promises what is probably most essential to real estate investors — a very fast closing in as few as fourteen days. In addition, the LTV value can range up to 70% of the property's valuation, as determined by a certified appraiser. Some people believe hard money real estate loans to be more expensive than customary financing, because the lending rates of such loans commonly start off at 10%. But the term lengths for these loans are quite short, which means the rate is less significant. When it comes to short-term loans of a handful of years or less, you should look at them the same as you would for any other expense for the project. Right after you rehab and unload the home, recovering this expense is just like recuperating the expense for new kitchen appliances you installed in the property.
What's more, it is easy to be eligible for a hard money mortgage, regardless of whether your credit situation is not that impressive. Charleston hard money lenders don't approve a loan solely based on the customer's credit score — instead they additionally look at the property, its value and location, and the home's capability to pay back the financing by itself. On top of that, if the borrower can demonstrate prior experience in comparable real estate endeavors, can put down money towards a down payment, and the price of similar properties in the vicinity works to his benefit, he stands a very good likelihood of being eligible for a hard money real estate loan.
Finding a hard money lender in Charleston to fund your renovation project is not hard, so long as the opportunity before you is promising and has a good prospect for returns. Fill out the contact form on this page or get in touch with us via phone and let's discuss your project.
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