Hard Money Loans in Cincinnati
An outstanding deal on a fix and flip opportunity located in a very good area of the city shows up out of the blue — seems too good to be true. You've heard that competent home flippers, much like the married couple on HGTV's Flip or Flop, enjoy a remarkable average return of around $40,000 – $50,000. It's fair to say their rehabbing experience, knowledge of hard money loans, familiarity with the market, and auction talents have played a big role in their successes. Nevertheless, you are certain that your first class rehab and renovation knowledge will help you do a superb job for this house — what's more, you've already lined up one of the most suggested contractors in town to handle the project.
But financing is usually a different question entirely. Should you get in touch with a common lender, much like a bank for funding, it's likely going to take at least thirty to sixty days for the approval to come through and your money to be accessible. So if you are wishing for a fast closing, you have to realize that this may cost you weeks, making you lose out on the sale.
With banks establishing tougher loan standards in the recent past, it is now much harder for a self-employed individual to get a mortgage loan, especially when his credit circumstances are not flawless. So does this leave you with no option, but to drop your ambition of getting into rehabbing? Absolutely not, seeing as you always have the Cincinnati hard money loan alternative.
If you apply for a hard money home loan in Cincinnati, you'll get what's perhaps most vital to real estate purchases throughout the country — a very fast closing of around 2 weeks. Plus, the LTV value can range up to 70% of the home value, as determined by a credentialed appraiser. Some people believe hard money real estate loans to be higher in price than standard loans, since the lending rates for these loans typically start off at 10%. But in reality, the rate of interest isn't as pertinent for these loans, because they will never be long-term financing. Short-term loans of a couple months to a handful of years are best approached as cost of capital, similar to all other expenditures in connection with a project. Once you have turned the home and have made a successful financial gain, you can reclaim this expense from the house — much like recuperating the money necessary for the brand-new home appliances that you installed.
What's more, it isn't difficult to obtain a hard money mortgage, even if your credit situation is not that extraordinary. Instead of focusing primarily on the borrower's credit score or income, Cincinnati hard money lenders, who can be a private company or an individual person, approve a loan after analyzing the property value, its salability, where it is located, and the odds of recuperating their capital in case they have to foreclose the loan. The total amount that an individual can put down in advance for the property or home, his real estate experience, and selling price of comparable homes in the area are other details that go into determining a person's qualification for a hard money real estate loan.
So should you run into a really good and worthwhile flipping opportunity, be assured you will have a hard money lender in Cincinnati, in a position to lend you the capital you will need. Complete the form or give us a call to discuss the property or properties you have in mind.
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