Hard Money Loans in Columbiana

Suppose you've stumbled upon this excellent bargain on a fix and flip property in a great neighborhood, and you're either a seasoned real estate investor or a newbie who wants to try his hand at flipping. Most folks know that expert professional flippers, like Tarek and Christina El Moussa who do HGTV's reality flipping series, Fix or Flop, can readily generate an average profit margin of $40,000 to $50,000 on their flips. And sure, they are aided in a big way by their professional knowledge, auction abilities and understanding of hard money loans. That said, you have recently been brushing up your rehab and renovation knowledge, have got a licensed contractor ready to go and are positive that you can do a great job on this house.

But how exactly do real estate investors find funds? If you go after a normal loan via a bank, you will need to wait somewhere around 1 to 2 months up until the loan is approved and the funds are accessible. Given that home owners prefer a fast closing, it may be advisable to start looking for some other financing alternatives.

With banks adding harder loan standards in recent years, it has become much harder for a self-employed individual to get a home loan, especially when his credit score is not optimal. So will a shortage of financing stop you from pursuing your dream? Definitely not, given that you always have the hard money loan option.

If you decide to obtain a hard money home loan in , you're going to get what's probably most important to real estate offers across the country — a quick closing of approximately a couple weeks. And additionally, loan amounts can be done for up to 70% loan-to-value of the as-is house's valuation, as determined by a qualified appraiser. Some individuals consider hard money real estate loans to be costlier than regular financing, because the lending rates of such loans often start out at 10%. But the lengths of these loans are quite shorter, which means the interest rate is less significant. As it pertains to short-term loans of one or two years or even less, you should consider them the same as you would for any other expenditure for the project. Right after you fix up and sell the home, recovering this expense is the same as recovering the expense for new kitchen appliances you put in the house.

Also, it isn't difficult to qualify for a hard money mortgage, even when your credit score is not that extraordinary. hard money lenders don't take on a loan strictly judging by the applicant's credit score — instead they additionally assess the home, its location and value, and the property's capacity to pay back the financing on its own. Adding to this, if the person have proven experience in comparable real estate endeavors, can put down cash towards a down payment, and the value of comparable properties in the vicinity works to his benefit, he has got a good likelihood of qualifying to get a hard money real estate loan.

If you happen to have stumbled on a wonderful real estate opportunity with a high chance of returns, you have also discovered a hard money lender in that's prepared to provide funding for your fix and flip venture. Submit the form on this page or call us and let's discuss the property you have in mind.

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Investment property loans only please, no primary residences at this time.