Hard Money Loans in Charlottesville

Imagine you've come across this truly good deal for a fix and flip property located in a great neighborhood, and you are either a seasoned real estate investor or a first-timer who really wants to try out flipping houses. A majority of people know that capable professional flippers, along the lines of Tarek and Christina El Moussa from HGTV's reality home flipping series, Fix or Flop, can make a typical profit of forty to fifty thousand dollars when they flip properties. Of course, you also know that their great results can be credited to the simple fact that they are experts, are well versed in hard money loans, they know the marketplace quite well and furthermore, they are good at working a public auction to buy their houses at an appropriate deal. Still, your rehab and remodeling knowledge isn't that bad either — in any case, you have already located a suitable building contractor to tackle this home.

But how exactly do real estate investors get funds? In the event you meet with a common lending institution, such as a bank for a mortgage loan, it's in all likelihood going to take, at a minimum, 30-60 days for your acceptance to come through and your money to be distributed. Thus if you happen to be looking for a fast closing, you have to be aware that this could cost you a couple weeks, causing you to lose out on the house.

As well as this, in case you have an unfavorable credit rating or do not receive a consistent source of income, it is usually more difficult for you to be eligible for a bank financing, seeing the tougher loan guidelines banks have put in place recently. So do you have to give up and forego your desire to embark into real estate? Most certainly not, seeing as you also have the Charlottesville hard money loan alternative.

A hard money home loan in Charlottesville gives you what is considered essential to most real estate transactions — a quick closing of only a few weeks and more often than not less. Also, hard money lenders can approve loans up to 70% LTV of the property's valuation, as determined by a licensed third-party evaluator. Some individuals believe hard money real estate loans to be more costly than customary loans, considering lending rates for such loans typically start at 10%. But the lengths of these loans tend to be comparatively shorter, which makes the interest rate far less significant. The price tag on such short-term loans ought to be looked at much like every other cost that you might encounter during the project. Once you have turned the property and have made a good profit, you can get back this expense from the property — just like recouping the money necessary for the brand-new appliances for the kitchen that you've put in.

What's more, it is simple to be eligible for a hard money mortgage, even if your credit rating is not that impressive. Charlottesville hard money lenders don't take on a loan strictly based on the customer's credit score — rather they will analyze the home, its valuation and location, and the home's capability to pay back the financing independent of the borrower. Adding to this, if the applicant can demonstrate prior experience in equivalent real estate ventures, can place down money towards the down payment, and the cost of similar houses in the neighborhood works to his benefit, he has got an excellent chance of qualifying for a hard money real estate loan.

So in case you have found a wonderful fixer-upper with a significant chance of returns, you have also discovered a hard money lender in Charlottesville that is prepared to provide financing for your rehab project. Enter your info into the contact form or give us a call to discuss your property.

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Investment property loans only please, no primary residences at this time.