Hard Money Loans in Clayton
You discovered this amazing possibility for fixing and flipping this nice outdated house in a good location and it looks a lot like the one you have been eagerly waiting on for quite a while. Many people know that skilled professional flippers, like Tarek and Christina El Moussa who star in HGTV's reality flipping series, Fix or Flop, can readily earn an average profit margin of $40,000 to $50,000 on their flips. Undoubtedly, you also know that their successes can be credited to the fact that they are experts, are proficient in hard money loans, they understand the market quite well and furthermore, they are good at working an auction for getting an appropriate price. With that being said, you have recently been brushing up your rehab and remodeling skills, have got a general contractor lined up and are certain that you're capable of doing a bang up job on this property.
But where do real estate investors find funds? For those who apply for a normal bank loan, you will have to wait roughly 30-60 days before the loan is authorized and the funding is available. Since the majority of home owners give preference to a fast closing, you may want to begin seeking out other funding options.
To add to it, banks have already been tightening up their lending criteria as of late, rendering it more difficult for a person to receive a traditional home loan if their credit rating is not perfect or he doesn't have a regular salaried job. So must you give up and abandon your dream to embark into the real estate market? Not at all, particularly when Clayton hard money loans will assist you to realize great things in the real estate market.
If you should opt for a hard money home loan in Clayton, you have access to what is perhaps most vital to real estate purchases across the country — a very fast closing of approximately 14 days. And additionally, loan amounts can be made up to 70% loan-to-value of the "as is" value, as determined by a qualified appraiser. A number of people consider hard money real estate loans to be higher in price than ordinary loans, because the interest rates for these loans commonly start out at 10%. But the time frames of these loans are much shorter, which means the rate is far less significant. Short-term loans of a couple months to a few years are best looked at as cost of capital, the same as all other expenditures in connection with a project. And as soon as you have turned the property, recovering this expense is identical to recovering the expense for the kitchen and bath improvements you performed.
Besides, hard money mortgages are easy qualifying, regardless if you have a low credit rating. The customer's credit score is not the lone determining factor for Clayton hard money lenders — additionally, they look at the property, its market value, its location, and its capability to bring back their investment if everything does not go as intended. On top of that, if the applicant can demonstrate past experience in equivalent real estate projects, can place down cash towards a down payment, and the value of comparative houses in the vicinity works in his favor, he has a good chance of being eligible for a hard money real estate loan.
So in the event you run into a good and profitable investment opportunity, relax knowing you'll have a hard money lender in Clayton, ready to loan you the capital you may need. Complete the contact form or get in touch with us via phone and let's discuss your property.
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