Hard Money Loans in Clarkston
There is this amazing opportunity to fix and flip this wonderful old condo in a very good area and it looks like the deal you have been expecting for quite a while. Everyone knows that expert professional flippers, like Tarek and Christina El Moussa who star in HGTV's reality flipping series, Fix or Flop, are able to turn an average profit margin of forty to fifty thousand dollars on their flips. Naturally, you also understand that their success can be attributed to the fact that they are professionals, are proficient in hard money loans, they understand the market really well and additionally, they know how to work a public auction to buy their houses at an appropriate deal. That said, you've recently been cultivating your rehab and remodeling knowledge, have got a general contractor ready to go and are positive that you will be able to do a great job on this house.
But where precisely do real estate investors find capital? If you get in touch with a common lending institution, like a bank for financing, it's more than likely going to take, at the very least, four to eight weeks for the acceptance to come through and the money to be furnished. So if you happen to be expecting a fast closing, it's important for you to realize that this may cost you a couple weeks, making you lose out on the house.
With banks adding harder loan standards in the last few years, it is now much harder for a self-employed individual to get a home loan, particularly if his credit score is not flawless. So does this mean you are without an option, but to give up your aspiration to venture into flipping? Under no circumstances, especially while Clarkston hard money loans enable you to achieve many amazing things in real estate.
A hard money home loan in Clarkston gives you what is viewed as vital to many real estate deals — a fast closing of just a few weeks and oftentimes even less. Also, hard money lenders will often consent to funding up to 70% LTV of the property value, as identified by a professional third-party evaluator. Some people believe hard money real estate loans to be more expensive than customary loans, because the lending rates for such loans often start out at 10%. But the lengths of these loans tend to be fairly short, which makes the rate far less important. Short-term loans of a couple of months to a handful of years are best approached as cost of capital, the same as any other financial outlay in connection with a project. And when you've sold the property, recovering this expense is identical to recouping the expense for the kitchen and bath improvements you did.
Moreover, even individuals with weak credit will be able to qualify for a hard money mortgage. The applicant's credit score isn't the sole deciding factor for Clarkston hard money lenders — in addition, they consider the piece of real estate, its market value, where it is located, and its capability to return their financial commitment if things do not go as planned. How much an applicant can put down beforehand for the property, how much experience he has in real estate investments, and price range of comparable properties in the area are various other details that go into establishing an individual's suitability for a hard money real estate loan.
Locating a hard money lender in Clarkston to finance your fix and flip endeavor is not difficult, so long as the opportunity that lies ahead of you is promising and offers a strong potential for returns. Submit the contact form or get in touch with us via phone and let's talk about the property you have in mind.
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