Hard Money Loans in Clifton Heights
Suppose that you've run into this really great deal for a fix and flip property you found in an ideal location, and you're either a seasoned real estate investor or a newbie who wants to try out flipping homes. You've heard that professional home flippers, much like the married couple on HGTV's Flip or Flop, turn an impressive average return of around $40,000 – $50,000. Undoubtedly, you also understand that their success are due to the simple fact that they're industry experts, are knowledgeable in hard money loans, they know the market really well and furthermore, they are good at working an auction to buy their homes at a good deal. With that being said, you have also been cultivating your rehab and renovation knowledge, have a very good general contractor lined up and are positive that you will be able to do an impressive job on this home.
But how can real estate investors get funds? In the event you meet with a common lender, like a bank for financing, it is more than likely going to take, at the very least, four to eight weeks for the acceptance to be completed and the funds to be sent out. Thus if you are hoping for a fast closing, you must be aware that this could set you back by weeks, making you miss out on the home.
On top of this, banks have been tightening their lending criteria in recent times, making it challenging for someone to receive a typical loan if their credit circumstances are not flawless or he does not have a consistent salaried profession. So does that leave you with no other option, but to drop your dream of venturing into the fix and flip business? Under no circumstances, particularly while Clifton Heights hard money loans enable you to accomplish great things in real estate.
A hard money home loan in Clifton Heights can provide what is regarded as essential to many real estate transactions — a very fast closing of just a 2-3 weeks and more often than not less. Further, loan amounts can be made up to 70% loan-to-value of the "as is" property value, as calculated by a qualified appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, seem to be higher in price than bank loans. But the lengths of these loans are quite short, making the interest rate much less significant. Short-term loans of a couple of months to a few years are best thought of in terms of cost of capital, very much like every other financial outlay related to a project. And once you've sold the house, recouping this expense is identical to recouping the expense for all the bathroom improvements you performed.
Also, it is simple to qualify for a hard money mortgage, even if your credit score is not that impressive. Instead of focusing strictly on the person's credit score or income, Clifton Heights hard money lenders, who could be a private company or an individual, approve a loan after examining the home value, its marketability, where it is located, and the odds of recuperating their money should they have to foreclose the loan. Several other factors 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 prior experience as a real estate investor, and selling price of similar, fairly recently sold homes in the area.
Finding a hard money lender in Clifton Heights to finance your flipping business is not very challenging, provided that the opportunity that lies before you is promising and has a strong prospect for returns. Enter your info into the form or give us a call and let's discuss the property you have in mind.
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