Hard Money Loans in Clarksburg
There's this amazing possibility for renovating and flipping this wonderful outdated house in a very good part of town and it looks a lot like the one you've been wanting for quite some time. You've heard that competent property flippers, much like the couple on HGTV's Flip or Flop, enjoy a remarkable average return close to forty to fifty thousand dollars. No need to explain that their past experiences rehabbing, understanding of hard money loans, familiarity with the market, and auction skills have been large factors to their successes. Nonetheless, your rehab and remodeling knowledge isn't that bad either — aside from that, you have already located a suitable contractor to handle this home.
But how can real estate investors obtain financing? If you opt for a regular loan via a bank, you will wind up waiting roughly 1 to 2 months until eventually the loan is authorized and your money is readily available. Thus if you are expecting a fast closing, it's important for you to be aware that this could cost you a few weeks, making you miss out on the opportunity.
On top of this, banks have already been tightening their lending criteria in recent times, rendering it more difficult for a person to get a conventional loan if their credit rating is not flawless or he doesn't have a regular salaried job. So do you have to admit defeat and abandon your desire to embark into fix and flips? Not at all, especially when Clarksburg hard money loans can help you achieve great things in the real estate market.
Should you obtain a hard money home loan in Clarksburg, you're going to get what's probably most important to real estate negotiations across the country — a quick closing of approximately fourteen days. Plus, the LTV value can go up to 70% of the property's valuation, as estimated by a credentialed appraiser. At first, hard money real estate loans, with starting lending rates of 10%, seem to be costlier than bank lending products. But the term lengths for these loans tend to be much shorter, making the interest rate far less significant. Short-term loans of a couple of months to a handful of years are best thought of as cost of capital, much like every other expense involved with a project. Right after you renovate and resell the house, recouping this expense is no different than recouping the one for stainless steel appliances you installed in the property.
Moreover, even a person with poor credit can still qualify for a hard money mortgage. Clarksburg hard money lenders do not authorize a loan exclusively according to the borrower's credit score — rather they will assess the property, its location and value, and the home's capacity to pay back the loan on its own. Other variables that influence a borrower's acceptance for a hard money real estate loan can include how much he is in a position to put into a down payment, his past experience as a real estate investor, and price of comparable, recently sold residences in the neighborhood.
Locating a hard money lender in Clarksburg to finance your renovation project is not hard, so long as the opportunity in front of you is promising and possesses a strong prospect for returns. Complete the contact form on this page or call us to talk about your project.
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