Hard Money Loans in Coldwater
Imagine you've come across this truly good deal on a fix and flip property in an ideal neighborhood, and you are either a skilled real estate investor or a newbie who really wants to try his hand at flipping. Everybody knows that capable professional flippers, such as Tarek and Christina El Moussa from HGTV's reality flipping program, Fix or Flop, can generate an average profit margin of $40,000 to $50,000 on their home projects. No need to explain that their rehabbing experience, understanding of hard money loans, expertise in their housing market, and auction talents have been large factors to their successes. Still, your rehab and remodeling skills aren't bad either — besides, you have already identified a suitable contractor to handle this job.
But funding is often a different issue entirely. For those who meet with a common lending institution, much like a bank for a mortgage loan, it can take, as a minimum, four to eight weeks for the approval to be completed and the money to be furnished. So if you're expecting a fast closing, it's important for you to realize that this may set you back by weeks, making you miss out on the opportunity.
With banks adding tougher loan requirements in the past several years, it is harder for a self-employed person to find a mortgage loan, particularly if his credit rating is not perfect. So do you have to admit defeat and abandon your desire to get into real estate? Most certainly not, because you always have the Coldwater hard money loan alternative.
If you decide to obtain a hard money home loan in Coldwater, you're going to get what's possibly most important to real estate negotiations throughout the country — a fast closing of approximately 2 weeks. In addition, the LTV value can range up to 70% of the place's valuation, as estimated by a competent appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, could be seen as costlier than bank loans. But once you appreciate that these loans are not long-term loans, the interest rate can be misleading. Short-term loans of a couple of months to a handful of years are best looked at as cost of capital, very much like all other expenditures in connection with a project. And as soon as you have turned the property, recovering this expense is comparable to recouping the expense for the bathroom upgrades you performed.
Aside from that, hard money mortgages are easy qualifying, regardless if you have a low credit score. Coldwater hard money lenders don't approve a loan solely on the basis of the borrower's credit score — rather they additionally analyze the property, its location and value, and the property's capacity to pay back the loan without the help of the borrower. How much of their own money an applicant can put down in advance towards the property or home, his real estate experience, and selling price of comparative homes in the same vicinity are various other factors that go into ascertaining a borrower's qualification for a hard money real estate loan.
So in case you have stumbled upon a wonderful fixer-upper with a huge probability of returns, you have also found yourself a hard money lender in Coldwater who is happy to provide financing for your rehab project. Enter your info into the contact form on this page or give us a call to discuss your project.
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