Hard Money Loans in Claremore
Imagine you've run into this truly good deal on a fix and flip property you found in a terrific location, and you are either a skilled real estate investor or a newbie who wants to try out flipping houses. Professional house flippers, like the young married couple on Flip or Flop, HGTV's reality flipping show, are capable of bringing in a gain of $40-$50k as an average on more than one occassion. Of course, you also are aware that their success can be attributed to the simple fact that they're industry experts, are proficient in hard money loans, they understand the market quite well and additionally, they know how to work a public auction for getting an appropriate deal. Nevertheless, you are certain that your superb rehab and remodeling knowledge will help you do a quality job on this project — what's more, you already have lined up one of the best contractors in the business to take care of the job.
But where can you obtain the needed capital for home flipping? Should you apply for a normal loan from the bank, you will need to wait roughly one to two months until eventually the financing is approved and your money is accessible. Thus if you are wishing for a fast closing, it's important for you to understand that this may set you back by a couple of weeks, causing you to miss out on the sale.
On top of this, banks have already been tightening up their lending standards in recent years, rendering it more hard for a person to obtain a traditional home loan if their credit circumstances are not flawless or he does not have a consistent salaried occupation. So does this mean you have no option, but to give up your ambition of getting into flipping? Not at all, especially when Claremore hard money loans can help you achieve many amazing things in the real estate market.
A hard money home loan in Claremore provides what's considered imperative to most real estate deals — a very fast closing of just a few weeks and at many times even less. Plus, the LTV value can range up to 70% of the property value, as estimated by a certified appraiser. With interest rates starting off near 10%, hard money real estate loans might appear, initially, to be more pricey when compared with conventional bank financing. But usually, the interest rate is not as useful a measure for these loans, simply because they aren't long-term loans. When it comes to short-term loans of 1 or 2 years or less, you should look at them the same as you might for every other expense for your project. Once you have resold the home and have made a successful gain, you can get back this expense from the property — the same as recouping the money necessary for the brand-new kitchen appliances that you've installed.
In addition, even individuals with weak credit can easily qualify for a hard money mortgage. The customer's credit score will not be the lone deciding factor for Claremore hard money lenders — they also evaluate the home, its market valuation, its location, and its capability to return their investment if things should not work out as intended. Several other variables that affect a customer's eligibility for a hard money real estate loan can include how much money he is able to put towards a down payment, his prior experience as a real estate investor, and price of comparative, just recently sold homes in the area.
If you happen to have stumbled upon a really good home to flip with a high chance of returns, you've also stumbled upon a hard money lender in Claremore who's prepared to finance your flipping projects. Complete the contact form or call us and let's talk about the property or properties you have in mind.
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