Hard Money Loans in Cleveland Heights
A fantastic buy on a fix and flip property in an excellent neighborhood all of a sudden shows up — sounds so good that it is difficult to believe. Many people know that skilled professional flippers, such as Tarek and Christina El Moussa from HGTV's reality home flipping series, Fix or Flop, can turn a typical profit of forty to fifty thousand dollars when they rehab properties. Of course, you also know that their successes can be credited to the fact that they are industry experts, are proficient in hard money loans, they understand the marketplace quite well and in addition, they are good at working an auction for getting a reasonable deal. Nevertheless, you're assured that your superb rehab and remodeling skills will enable you to do a superb job for this property — what's more, you've already lined up one of the premier general contractors in the business to take on the project.
But financing is usually a different problem altogether. When you approach a standard lending institution, like a bank for a mortgage loan, it's more than likely going to take, at a minimum, four to eight weeks for the acceptance to come through and your funds to be given out. So if you happen to be expecting a fast closing, you must be aware that this could cost you a couple weeks, making you lose out on the opportunity.
On top of this, banks have been tightening their lending requirements as of late, making it hard for someone to receive a regular loan if their credit rating is not perfect or he doesn't have a consistent salaried occupation. So does that leave you with no option, but to abandon your aspiration of getting into the fix and flip business? Not at all, especially while Cleveland Heights hard money loans can help you realize many amazing things in the real estate market.
If you get a hard money home loan in Cleveland Heights, you will get what is probably most important to real estate negotiations across the country — a very fast closing of about a couple weeks. Additionally, financing is made up to 70% loan-to-value of the as-is valuation, as calculated by a professional appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, seem to be higher in price than bank lending options. But when you consider these loans are not long-term mortgage loans, the rate of interest may be misleading. When it comes to short-term loans of a few years or less, you should think of them identical to any kind of other expenditure for the project. Once you have resold the home and have made a positive financial gain, you can recoup this expense from the property or home — much like recouping the cost of brand-new kitchen appliances that you've put in.
Apart from this, hard money mortgages are not hard to qualify for, whether or not you have got a bad credit score. Rather than focusing entirely on the applicant's credit score or source of income, Cleveland Heights hard money lenders, who may be a privately owned company or an individual person, say yes to a loan as a result of examining the property value, its marketability, its location, and the odds of recovering their money in the event of foreclosure. Other criteria that impact an individual's approval for a hard money real estate loan can include how much money he is in a position to put towards a down payment, his former experience being a real estate investor, and price of comparable, just recently sold homes in the vicinity.
Locating a hard money lender in Cleveland Heights to cover expenses for your renovation project is not very hard, assuming that the opportunity before you is promising and has a good potential for returns. Enter your info into the form on this page or get in touch with us via phone to talk about your property or properties.
A loan specialist will be in touch shortly