Hard Money Loans in Clayton

Imagine you've run across this truly good deal on a fix and flip property located in a great neighborhood, and you happen to be either a skilled real estate investor or a newbie who really wants to try his hand at flipping. Expert property flippers, such as the young married couple on Flip or Flop, HGTV's reality flipping show, are capable of earning a profit of forty to fifty grand as an average on multiple occasions. It goes without saying their rehabbing experience, understanding of hard money loans, expertise in their market, and auction talents have had a big part in their successes. Having said that, you have also been developing your rehab and remodeling skills, have a licensed contractor arranged and are positive that you will be able to do a stellar job on this house.

But how do real estate investors get financing? For those who go after a regular bank loan, you will have to wait around approximately 30-60 days until the money is authorized and your money is available. So if you will be expecting a fast closing, you need to understand or know that this will cost you weeks, making you lose out on the sale.

With banks adding more challenging loan criteria in the past several years, it is now more difficult for a self-employed individual to find a mortgage loan, especially when his credit situation is not perfect. So will a lack of funds stop you from sticking to your dream? Most certainly not, given that you also have the Clayton hard money loan alternative.

A hard money home loan in Clayton gives you what's considered essential to most real estate sales — a fast closing of only a couple of weeks and sometimes even less. Additionally, loan amounts are made up to 70% loan-to-value of the as-is value, as established by a professional appraiser. At first, hard money real estate loans, with starting lending rates of 10%, seem to be costlier than bank loans. But when you understand these loans are not long-term mortgage loans, the rate of interest tends to be misleading. As it pertains to short-term loans of several years or even less, you should consider them the same as you might for any other expense for the project. When you have resold the property and have made a good financial gain, you can reclaim this expense from the house — very much like recuperating the cost of brand-new home appliances that you have installed.

What's more, it is easy to qualify for a hard money mortgage, regardless if your credit situation is not that great. The borrower's credit score isn't the primary deciding factor for Clayton hard money lenders — additionally, they evaluate the property, how much it is worth, its location, and its capability to bring back their investment if things should not work out as intended. On top of that, if the borrower can demonstrate prior experience in equivalent real estate ventures, can put down cash towards a down payment, and the value of equivalent properties in the area works to his benefit, he has an excellent shot of being eligible to obtain a hard money real estate loan.

So if you have stumbled on an excellent real estate opportunity with a significant chance of returns, you've also found yourself a hard money lender in Clayton who is prepared to provide funding for your flipping projects. Submit the form on this page or get in touch with us via phone to talk about the property or properties you have in mind.

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