Hard Money Loans in Colorado Springs
Imagine you've stumbled upon this excellent deal for a fix and flip property located in a great neighborhood, and you happen to be either a skilled real estate investor or a newbie who hopes to try his hand at flipping. You've heard that competent house flippers, such as the husband and wife on HGTV's Flip or Flop, enjoy an impressive average return near forty to fifty thousand dollars. Naturally, you also are aware that their success are credited to the fact that they're professionals, are proficient in hard money loans, they understand the marketplace quite well and in addition, they know how to work a public auction to buy their properties at a reasonable price. Nonetheless, your rehab and remodeling skills aren't that bad either — besides, you've already found the right licensed contractor to handle the job.
But financing is often a different problem entirely. Should you get in touch with a common lender, such as a bank for funding, it can take, as a minimum, 30-60 days for the acceptance to come through and your funds to be dispersed. Because most sellers favor a fast closing, it may be best to begin looking for some other funding alternatives.
Furthermore, for those who have an unfavorable credit situation or don't receive a routine income source, it is usually tougher for you to obtain bank financing, seeing the stricter loan guidelines banks have put in place recently. So does this mean you have no option, but to abandon your dream of getting into rehabbing? Definitely not, because you also have the Colorado Springs hard money loan option.
A hard money home loan in Colorado Springs offers what's considered imperative to many real estate deals — a fast closing of only a couple of weeks and sometimes even less. Furthermore, hard money lenders are capable of doing funding up to 70% LTV of the property or home's valuation, as estimated by a certified third-party evaluation. Some people believe hard money real estate loans to be costlier than regular financing, because the lending rates of such loans often start out at 10%. But if you appreciate that these are not long-term mortgage loans, the rate of interest tends to be misleading. When it comes to short-term loans of 1 or 2 years or even less, you should consider them just like you would other expenses for the project. And once you have sold the property, recuperating this expense is comparable to recuperating the expense for the bathroom or other updates you did.
What's more, it is simple to qualify for a hard money mortgage, regardless of whether your credit rating is not that great. Colorado Springs hard money lenders do not authorize a loan strictly judging by the applicant's credit score — rather they additionally look at the home, its value and location, and the property's capacity to pay back the financing on its own. Adding to that, if the person can demonstrate prior experience in similar real estate ventures, can put down cash towards a down payment, and the cost of similar properties in the neighborhood works in his favor, he has a very good chance of being eligible to get a hard money real estate loan.
So in case you have stumbled upon a really good real estate opportunity with a huge prospect of returns, you've also discovered a hard money lender in Colorado Springs who is prepared to provide financing for your flipping ventures. Complete the form or give us a call and let's talk about the property or properties you have in mind.
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