Hard Money Loans in Colona
A fabulous buy on a fix and flip opportunity located in a nice area of the city shows up out of the blue — sounds so good that it is difficult to believe. Professional home flippers, similar to the young married couple on Flip or Flop, HGTV's reality flipping series, are capable of bringing in a gain of $40-$50k on a consistent basis. And indeed, they are helped in a major way via their professional know-how, auction abilities and knowledge of hard money loans. Nonetheless, your rehab and renovation skills aren't bad either — in any case, you have already found a good building contractor to take on the home.
But how do real estate investors find funds? A conventional lender, like for example a bank, takes no less than one to two months to approve the financing and deliver the funds. With all the sellers looking for a fast closing, that doesn't appear like a wise idea to you whatsoever.
With banks introducing more challenging loan guidelines in recent years, it is now more difficult for a self-employed person to find a mortgage loan, especially when his credit rating is not perfect. So will inadequate funding keep you from pursuing your dream? Certainly not, because you always have the Colona hard money loan alternative.
A hard money home loan in Colona offers you what is considered imperative to most real estate deals — a very fast closing of only a few weeks and more often than not less. In addition, the LTV value can go up to 70% of the property's valuation, as determined by a credentialed appraiser. Some people regard hard money real estate loans to be more pricey than regular loans, since the interest rates for such loans usually start out at 10%. But the lengths of these loans are comparatively short, which makes the interest rate far less important. When it comes to short-term loans of 1 or 2 years or even less, you should think of them just like you would other expenditures for your project. And when you have turned the home, recuperating this expense is comparable to recovering the expense for the bathroom or other upgrades you did.
Besides, hard money mortgages are easy qualifying, regardless if you have below-average credit. Colona hard money lenders don't approve a loan strictly based on the person's credit score — rather they will analyze the home, where it is located and how much it is worth, and the property's capacity to pay back the financing on its own. Adding to this, if the applicant can demonstrate prior experience in equivalent real estate endeavors, can put down money for a down payment, and the price of comparative homes in the area works to his benefit, he has a good likelihood of qualifying to get a hard money real estate loan.
Locating a hard money lender in Colona to help with expenses for your flipping business is not very challenging, assuming that the opportunity before you is promising and boasts a good prospect for returns. Submit the contact form on this page or get in touch with us via phone to talk about the property or properties you have in mind.
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