Hard Money Loans in Clayton
Imagine you've encountered this excellent bargain for a fix and flip property in an ideal neighborhood, and you happen to be either a skilled real estate investor or a newbie who hopes to try out flipping homes. You've heard that veteran property flippers, similar to the husband and wife on HGTV's Flip or Flop, turn an impressive average profit close to $40,000 – $50,000. It goes without saying their past experiences rehabbing, understanding of hard money loans, expertise in their housing market, and auction talents have been major factors to their results. However, you're certain that your first class rehab and remodeling talents will help you do a quality job on the home — what's more, you already have arranged to have one of the best contractors in the business to take care of this project.
But money is a separate issue altogether. Should you go after a conventional loan via a bank, you will need to wait roughly 1 to 2 months until the financing is authorized and your funding is ready. Since the majority of home owners would rather have a fast closing, you might need to start searching for additional funding alternatives.
With banks introducing tougher loan guidelines in the past few years, it's become tougher for a self-employed individual to get a mortgage loan, especially when his credit rating is not optimal. So do you have to give up and forego your ambition to venture into real estate? Under no circumstances, especially when Clayton hard money loans can help you achieve great things in the real estate world.
A hard money home loan in Clayton can provide what is regarded as vital to most real estate deals — a fast closing of only a few weeks and at many times less. Besides that, hard money lenders will often consent to lending up to 70% LTV of the property or home value, as calculated by a credentialed third-party evaluation. At first, hard money real estate loans, with starting lending rates of 10%, appear to be more costly than bank financing. But in reality, the interest rate is not as pertinent for these loans, given that they will never be long-term loans. The price of such short-term loans should be viewed on par with every other expenditure that you would have to meet pertaining to the project. And when you have finally flipped the house, recuperating this expense is comparable to recovering the expense for all the bathroom upgrades you did.
Aside from that, hard money mortgages are easy qualifying, even when you posses less-than-perfect credit. Instead of focusing only on the applicant's credit score or wages, Clayton hard money lenders, who may be a privately owned company or an individual, authorize a loan after examining the property value, ease of marketability, its location, and the likelihood of getting back their capital in the event of foreclosure. Adding to this, if the individual can demonstrate past experience in equivalent real estate ventures, can put down money for a down payment, and the value of comparable houses in the vicinity works to his benefit, he has an excellent likelihood of being approved to get a hard money real estate loan.
So in case you have stumbled on a really good real estate opportunity with a huge potential for returns, you have also found yourself a hard money lender in Clayton who is prepared to fund your rehab project. Submit the contact form on this page or give us a call to talk about your property.
A loan specialist will be in touch shortly