Hard Money Loans in Clio
Suppose that you've stumbled upon this excellent bargain on a fix and flip property located in a great neighborhood, and you happen to be either an experienced real estate investor or a newbie who is looking to try out flipping homes. You may have heard that veteran house flippers, like the married couple on HGTV's Flip or Flop, have a remarkable average profit margin close to forty to fifty thousand dollars. Without question, their rehabbing experience, understanding of hard money loans, familiarity with the housing market, and auction skills have been large factors to their successes. That said, you have also been cultivating your rehab and remodeling knowledge, have a contractor lined up and are certain that you can do a great job for this property.
But where can you obtain the needed funding for flipping? In the event you get in touch with a common lender, like a bank for a loan, it's in all likelihood going to take a minimum of thirty to sixty days for the acceptance to come through and your money to be given out. So if you will be hoping for a fast closing, you must understand or know that this could set you back by weeks, causing you to lose out on the sale.
As well as this, for those who have an unfavorable credit situation or do not have a routine income, it is usually more challenging for you to qualify for a bank loan, considering the more stringent loan guidelines banks have introduced in recent times. So will inadequate funds prevent you from following your dream? By no means, considering that you can always go the Clio hard money loan route to fund your rehab project.
A hard money home loan in Clio promises what is possibly most essential to real estate investors — a fast closing in as few as 14 days. Aside from that, loans are made up to 70% loan-to-value of the "as is" value, as determined by a licensed appraiser. With loan rates starting off at about 10%, hard money real estate loans might seem, at first, to be more pricey in comparison with traditional bank lending products. But the term lengths for these loans are relatively shorter, which means the interest rate is much less important. Short-term loans of a couple of months to a few years are best approached as cost of capital, the same as any other expense in connection with a project. Right after you remodel and sell the home, recovering this expense is no different than recuperating the expense for stainless steel appliances you put in the property.
Moreover, even an individual with bad credit can still qualify for a hard money mortgage. The borrower's credit score isn't the single determining factor for Clio hard money lenders — they also evaluate the home, what is it valued at, where it is located, and its ability to bring back their investment if everything does not go as intended. Adding to that, if the borrower can demonstrate prior experience in equivalent real estate ventures, can place down cash for a down payment, and the cost of equivalent properties in the area works in his favor, he stands a good shot of qualifying to obtain a hard money real estate loan.
So should you come across an outstanding and worthwhile investment opportunity, feel comfortable knowing you will have a hard money lender in Clio, prepared to loan you the money you'll need. Complete the form on this page or call us to discuss the project you have in mind.
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