Hard Money Loans in Coal Grove
An incredible buy on a fix and flip property in a very good area of the city shows up out of the blue — sounds so good that it is hard to believe. Expert residential home flippers, such as the young married couple on Flip or Flop, HGTV's reality flipping series, are able to earn a profit of $40-$50k as an average on multiple occasions. And without a doubt, they are helped in a big way due to their professional experience, auction skills and understanding of hard money loans. Still, your rehab and renovation skills aren't that bad either — in any case, you've already identified an ideal general contractor to tackle this project.
But money is often a separate problem altogether. A traditional lender, for instance a bank, takes at a minimum 1 to 2 months to approve the mortgage and hand over the cash. So if you will be looking for a fast closing, it's important to realize that this could cost you weeks, causing you to miss out on the sale.
Moreover, should you have an unfavorable credit score or don't have a consistent source of income, it may be more difficult to be eligible for a a bank loan, considering the tighter loan criteria banks have introduced of late. So does this leave you with no option, but to give up your dream of venturing into flipping? Under no circumstances, especially when Coal Grove hard money loans will assist you to achieve great things in the real estate market.
A hard money home loan in Coal Grove offers what is viewed as essential to most real estate sales — a quick closing of just a couple of weeks and more often than not less. Besides that, hard money lenders are capable of doing loans up to 70% LTV of the property or home's valuation, as determined by a certified third-party evaluation. Some people consider hard money real estate loans to be more expensive than regular financing, since the interest rates of such loans ordinarily 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 expenditures for the project. Once you have resold the property or home and have made a successful return, you're able to recover this expense from the house — very much like recovering the cost of brand-new kitchen appliances that you've installed.
In addition, even a person with weak credit can easily be eligible for a hard money mortgage. Coal Grove hard money lenders don't authorize a loan strictly on the basis of the borrower's credit score — rather they also look at the property or home, its value and location, and the home's ability to pay back the loan independent of the applicant. Additional criteria that affect a person's approval for a hard money real estate loan can include how much money he is able to put towards a down payment, his past experience being a real estate investor, and price range of similar, recently sold residences nearby.
So in the event you run into a good and worthwhile investment opportunity, rest assured you'll have a hard money lender in Coal Grove, ready to loan you the funds you will need. Enter your info into the form or get in touch with us via phone and let's talk about your project.
A loan specialist will be in touch shortly