Hard Money Loans in Clive
Suppose you've run across this truly good deal on a fix and flip property in a great neighborhood, and you happen to be either a seasoned real estate investor or a newbie who wants to try his hand at flipping. You've probably heard that veteran property flippers, similar to the married couple on HGTV's Flip or Flop, enjoy a remarkable average return of around $40,000 – $50,000. Undoubtedly, you also realize that their successes are credited to the simple fact that they are professionals, are well versed in hard money loans, they know the marketplace really well and additionally, they know how to work a public auction to buy their houses at a good price. Nevertheless, you're certain that your impressive rehab and remodeling abilities can help you do a quality job on this project — what's more, you've already arranged to have one of the most recommended building contractors in the area to take on the project.
But how exactly do real estate investors get funds? Should you approach a standard lending institution, like a bank for financing, it is more than likely going to take at least thirty to sixty days for the approval to come through and the money to be dispersed. Since the majority of home owners favor a fast closing, you may have to start looking for other funding alternatives.
With banks introducing harder loan requirements in recent times, it is more difficult for a self-employed person to get a mortgage loan, especially when his credit rating is not optimal. So should you admit defeat and abandon your dream to embark into the real estate market? Never, considering that you can always go the Clive hard money loan route to pay for your rehab project.
If you put in an application for a hard money home loan in Clive, you'll get what's probably most important to real estate negotiations across the country — a quick closing of about fourteen days. What's more, the LTV value can go up to 70% of the home value, as evaluated by a certified appraiser. At first glance, hard money real estate loans, with starting interest rates of 10%, could be seen as more costly than bank financing. But if you consider these loans are not long-term home loans, the rate of interest tends to be misleading. As it pertains to short-term loans of one or two years or less, you should think of them similar to any other expenditure for your project. Once you've sold the property or home and have made a good profit, you can recover this expense from the property — very much like recuperating the money necessary for the brand-new kitchen appliances that you've put in.
Also, it isn't difficult to qualify for a hard money mortgage, regardless of whether your credit rating is not that great. Clive hard money lenders do not take on a loan strictly on the basis of the customer's credit score — instead they additionally evaluate the property, its value and location, and the property's capability to pay back the financing independent of the borrower. Adding to that, if the person can demonstrate past experience in similar real estate endeavors, can put down money towards the down payment, and the price of similar homes in the neighborhood works to his benefit, he has got a really good chance of qualifying for a hard money real estate loan.
So in the event you come across a good and lucrative flipping opportunity, relax knowing you'll have a hard money lender in Clive, ready to loan you the funds you'll need. Submit the form or get in touch with us via phone and let's talk about the property you have in mind.
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