Hard Money Loans in Columbiana
There's this amazing possibility for rehabbing and flipping this wonderful old property or home in a good location and it looks a lot like the deal you've been eagerly waiting on for quite a while. You've heard that competent property flippers, such as the husband and wife on HGTV's Flip or Flop, enjoy a remarkable average return near forty to fifty thousand dollars. Of course, you also understand that their results can be attributed to the simple fact that they are experts, are well versed in hard money loans, they know market trends really well and furthermore, they know how to work a public auction to buy their properties at a reasonable deal. Having said that, you have likewise been brushing up your rehab and remodeling knowledge, have a contractor ready for the project and are confident that you're capable of doing a great job on this home.
But where precisely do real estate investors obtain financing? If you opt for a conventional loan via a bank, you will end up waiting around approximately 1-2 months until eventually the loan is approved and your funding is ready. So if you are looking for a fast closing, you need to understand that this could set you back by weeks, causing you to lose out on the opportunity.
To add to it, banks have already been tightening up their lending criteria as of late, rendering it more challenging for someone to receive an ordinary loan if their credit circumstances are not perfect or he is lacking a regular salaried job. So will a shortage of financing stop you from pursuing your dream? Certainly not, because you also have the Columbiana hard money loan alternative.
A hard money home loan in Columbiana provides what is perhaps most crucial to real estate investors — a quick closing in as few as 2 weeks. In addition, the LTV value can reach up to 70% of the property's valuation, as evaluated by a credentialed appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, seem to be more costly than bank financing. But the lengths of these loans are comparatively short, which means the interest rate is much less significant. When it comes to short-term loans of one or two years or even less, you should consider them much like you would other expenses for the project. Once you've resold the home and have made a positive profit, you're able to get back this expense from the house — just like recuperating the money spent on the brand-new appliances for the kitchen that you have put in.
In addition, even a person with bad credit will be able to be eligible for a hard money mortgage. Columbiana hard money lenders don't take on a loan strictly according to the borrower's credit score — instead they also analyze the property or home, its valuation and location, and the home's capability to pay back the financing independent of the applicant. How much an individual can put down beforehand towards the home, how much practical experience he has in real estate investing, and price range of comparative properties in the same vicinity are additional factors that go into ascertaining an individual's qualification for a hard money real estate loan.
So should you run into an outstanding and lucrative flipping opportunity, feel comfortable knowing you will have a hard money lender in Columbiana, willing to lend you the capital you'll need. Enter your info into the form on this page or give us a call to discuss the property you have in mind.
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