Hard Money Loans in Clayton

Suppose you've run across this truly good bargain for a fix and flip property you found in an ideal location, and you're either an experienced real estate investor or a first-timer who is looking to try out flipping homes. Expert house flippers, much like the young couple on Flip or Flop, HGTV's reality flipping program, are able to bring in a gain of $40-$50k on a regular basis. Undoubtedly, you also are aware that their success are credited to the fact that they're experts, are proficient in hard money loans, they know the market really well and additionally, they know how to work an auction to buy their houses at an appropriate price. With that being said, you've also been cultivating your rehab and remodeling skills, have a general contractor ready to go and are confident that you're capable of doing a great job for this home.

But where can real estate investors get capital? For those who apply for an ordinary bank loan, you will need to wait somewhere around one to two months up until the financing is authorized and your funding is available. So if you are expecting a fast closing, you must be aware that this could set you back by a few weeks, causing you to miss out on the house.

On top of this, banks have already been tightening up their lending standards in recent times, which makes it tough for a person to receive a traditional home loan if their credit rating is not perfect or he is lacking a consistent salaried occupation. So do you have to admit defeat and forego your ambition to venture into fix and flips? Not at all, particularly while Clayton hard money loans will assist you to accomplish great things in the real estate market.

A hard money home loan in Clayton boasts what's probably most essential to real estate investors — a very fast closing time of as few as a few weeks. Plus, the LTV value can range up to 70% of the property value, as evaluated by a competent appraiser. At first, hard money real estate loans, with starting lending rates of 10%, could be seen as costlier than bank financing. But usually, the interest rate isn't as relevant for these loans, given that they are not long-term loans. Short-term loans of several months to a handful of years are best looked at in terms of cost of capital, similar to every other expense in connection with a project. And once you have finally flipped the property or home, recuperating this expense is comparable to recovering the expense for the bathroom or other upgrades you performed.

What's more, it's easy to be eligible for a hard money mortgage, even in the event your credit situation is not that impressive. The customer's credit score is not the sole deciding factor for Clayton hard money lenders — they also consider the house, what is it valued at, its location, and its ability to earn back their financial commitment if everything does not work out as intended. The total amount that a person can put upfront towards the property or home, his past real estate experience, and price range of equivalent homes in the area are additional factors that go into analyzing an applicant's suitability for a hard money real estate loan.

So should you run into an outstanding and profitable flipping opportunity, feel comfortable knowing you will have a hard money lender in Clayton, prepared to lend you the money you need. Complete the form or call us to discuss your property or properties.

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Investment property loans only please, no primary residences at this time.