Hard Money Loans in Columbia
Imagine you've run across this really great bargain on a fix and flip property located in a great neighborhood, and you happen to be either a seasoned real estate investor or a newbie who is looking to try out flipping homes. Everyone knows that knowledgeable professional flippers, such as Tarek and Christina El Moussa who star in HGTV's reality home flipping program, Fix or Flop, can readily make a typical profit of forty to fifty thousand dollars on their home projects. And without a doubt, they are aided in a major way via their professional know-how, auction abilities and familiarity with hard money loans. Having said that, you have also been brushing up your rehab and renovation knowledge, have a building contractor ready to go and are confident that you will be able to do an impressive job on this house.
But capital is usually a separate problem entirely. A typical lending institution, say for example a bank, takes at the very least 1 to 2 months to consent to the loan and release the cash. Considering that all the sellers want a fast closing, that doesn't appear like a wise idea to you at all.
To add to it, banks have been tightening up their lending standards in recent times, rendering it more challenging for someone to receive a regular home loan if their credit circumstances are not perfect or he does not have a regular salaried job. So does that leave you with no option, but to give up your ambition to venture into home flipping? Not at all, especially while Columbia hard money loans can help you realize great things in the real estate market.
If you should obtain a hard money home loan in Columbia, you have access to what's perhaps most vital to real estate offers across the country — a quick closing of roughly fourteen days. Besides that, hard money lenders are capable of doing funding up to 70% LTV of the property value, as established by a credentialed third-party appraiser. With the lending rates starting out at about 10%, hard money real estate loans might appear, at first glance, to be more expensive in comparison with conventional bank lending products. But usually, the interest rate is not as pertinent for these loans, since they aren't long-term loans. Short-term loans of a couple months to a handful of years are best approached in terms of cost of capital, similar to all other costs in connection with a project. Once you have turned the property or home and have made a good gain, you can recoup this expense from the home — the same as recovering the money spent on the brand-new home appliances that you've installed.
Also, it's easy to qualify for a hard money mortgage, even in the event your credit situation is not that great. Columbia hard money lenders don't approve a loan strictly according to the customer's credit score — rather they also analyze the home, its valuation and location, and the property's ability to pay back the loan by itself. The total amount that an applicant can put upfront for the house, how much practical experience he has in real estate investing, and selling price of equivalent properties in the same vicinity are additional factors that go into determining an individual's eligibility for a hard money real estate loan.
So in the event you come across a really good and lucrative investment opportunity, relax knowing you will have a hard money lender in Columbia, prepared to lend you the funds you will need. Complete the contact form on this page or give us a call and let's discuss the property or properties you have in mind.
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