Hard Money Loans in Colonial Heights
Imagine you've run across this excellent bargain for a fix and flip property you found in an ideal location, and you're either a seasoned real estate investor or a first-timer who hopes to try out flipping homes. You've heard that competent home flippers, similar to the couple on HGTV's Flip or Flop, enjoy an impressive average profit margin of around forty to fifty thousand dollars. Naturally, you also understand that their great results are credited to the fact that they are professionals, are knowledgeable in hard money loans, they know market trends quite well and they also are good at working an auction to buy their homes at a reasonable price. On the other hand, you're assured that your impressive rehab and renovation abilities will assist you to do a great job for this project — furthermore, you already have lined up one of the most sought after contractors in town to take on the job.
But money is usually a different question entirely. If you apply for a traditional bank loan, you will need to wait somewhere around one to two months up until the loan is authorized and your funding is ready to go. Thus if you happen to be expecting a fast closing, it's important to be aware that this could set you back by a couple of weeks, making you lose out on the opportunity.
To add to it, banks have already been tightening their lending standards in recent times, which makes it challenging for people to receive an ordinary home loan if their credit rating is not perfect or he doesn't have a consistent salaried job. So will inadequate funding keep you from following your ambitions? Definitely not, given that you also have the Colonial Heights hard money loan option.
Should you apply for a hard money home loan in Colonial Heights, you have access to what is possibly most essential to real estate negotiations across the country — a very fast closing of approximately 2 weeks. Further, loans can be made up to 70% loan-to-value of the as-is home's valuation, as determined by a licensed appraiser. At first, hard money real estate loans, with starting lending rates of 10%, seem to be more expensive than bank lending products. But the term lengths for these loans tend to be fairly short, which makes the rate less significant. Short-term loans of several months to a few years are best thought of in terms of cost of capital, the same as every other financial outlay associated with a project. After you remodel and unload the property, recovering this expense is no different than recovering the expense for stainless steel appliances you placed into the house.
Moreover, even an individual with bad credit can still qualify for a hard money mortgage. Colonial Heights hard money lenders don't take on a loan solely based on the customer's credit score — rather they will analyze the home, where it is located and how much it is worth, and the home's ability to pay back the loan by itself. Additional variables that influence a customer's acceptance for a hard money real estate loan include how much money he is able to put towards a down payment, his previous experience being a real estate investor, and price range of comparable, recently sold residences in the vicinity.
So any time you run into an outstanding and lucrative flipping opportunity, rest assured you'll have a hard money lender in Colonial Heights, willing to loan you the capital you may need. Enter your info into the contact form on this page or call us to discuss your property or properties.
A loan specialist will be in touch shortly