Hard Money Loans in Clinton
You discovered this phenomenal possibility for renovating and flipping this wonderful old home in a good part of town and it seems like the one you've been looking forward to for quite some time. You may have heard that professional property flippers, much like the married couple on HGTV's Flip or Flop, have a remarkable average profit margin of around forty to fifty thousand dollars. Undoubtedly, you also realize that their results are due to the simple fact that they're experts, are proficient in hard money loans, they understand market trends quite well and in addition, they are good at working a public auction to buy their properties at a reasonable deal. Having said that, you've recently been cultivating your rehab and renovation knowledge, have got a general contractor arranged and are confident that you will be able to do a stellar job for this home.
But how do you obtain the needed financing for flipping? Should you opt for a normal bank loan, you will end up waiting somewhere around 4-8 weeks until the financing is authorized and the money is readily available. So if you're anticipating a fast closing, you have to realize that this may cost you weeks, making you miss out on the opportunity.
To add to it, banks have been tightening their lending criteria in recent years, rendering it more challenging for someone to get a traditional loan if their credit situation is not perfect or he doesn't have a regular salaried job. So should you give up and abandon your dream to embark into real estate? Under no circumstances, particularly when Clinton hard money loans will assist you to realize many amazing things in the real estate market.
A hard money home loan in Clinton provides you with what's perhaps most important to real estate investors — a very fast closing time of as little as fourteen days. Plus, the LTV value can go up to 70% of the property value, as estimated by a competent appraiser. Some individuals regard hard money real estate loans to be more expensive than ordinary loans, because the lending rates for such loans generally start at 10%. But in reality, the lending rate isn't as useful a measure for these loans, given that they aren't long-term loans. When it comes to short-term loans of 1 or 2 years or less, you should think about them much like you would other expenses for your project. And once you've finally flipped the house, recouping this expense is comparable to recuperating the expense for the kitchen and bath improvements you performed.
Also, it is simple to be eligible for a hard money mortgage, regardless of whether your credit situation is not that great. Rather than focusing exclusively on the applicant's credit score or net income, Clinton hard money lenders, who can be a privately owned company or an individual person, approve a loan as a result of evaluating the home value, its marketability, its location, and the possibility of recuperating their capital should they have to foreclose the loan. The total amount that an individual can put upfront towards the home, his real estate experience, and selling price of comparable homes in the same neighborhood are other factors that go into determining a borrower's eligibility for a hard money real estate loan.
So any time you come across a very good and worthwhile investment opportunity, be assured you will have a hard money lender in Clinton, equipped to loan you the cash you need. Submit the form on this page or give us a call and let's discuss your project.
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