Hard Money Loans in Columbus Grove
Imagine you've run into this really great deal on a fix and flip property in a great location, and you're either a skilled real estate investor or a first-timer who hopes to try his hand at flipping. Most folks know that capable professional flippers, along the lines of Tarek and Christina El Moussa who star in HGTV's reality flipping program, Fix or Flop, can readily generate an average profit of $40,000 to $50,000 in their rehab business. Of course, you also are aware that their successes can be credited to the simple fact that they're industry experts, are proficient in hard money loans, they know market trends quite well and furthermore, they know how to work an auction to buy their homes at an appropriate price. Still, your rehab and remodeling skills aren't that bad either — besides, you've already identified an ideal building contractor to tackle this job.
But where do you find the necessary capital for home flipping? A standard lending institution, like for example a bank, takes at least 1 to 2 months to approve the mortgage and provide the funds. Since the majority of sellers prefer a fast closing, you may want to begin searching for additional funding options.
With banks establishing tougher loan criteria in the past several years, it is tougher for a self-employed person to get a home loan, especially when his credit situation is not optimal. So will inadequate financing prevent you from pursuing your dream? Certainly not, considering that you can always use the Columbus Grove hard money loan approach to finance your home renovating project.
A hard money home loan in Columbus Grove offers what's regarded as imperative to most real estate sales — a very fast closing of only a couple of weeks and more often than not less. Besides that, hard money lenders are able to do lending up to 70% LTV of the property or home value, as estimated by a professional third-party evaluation. Some people believe hard money real estate loans to be costlier than standard loans, because the interest rates for these loans often start out at 10%. But in reality, the interest rate isn't as useful a measure for these loans, given that they are not long-term financing. As it pertains to short-term loans of 1 or 2 years or even less, you should consider them the same as you might for any other expenditure for the project. Right after you remodel and sell the home, recouping this expense is just like recuperating the money you spent for stainless steel appliances you placed into the house.
In addition, even someone with poor credit can easily be eligible for a hard money mortgage. The borrower's credit score isn't the lone determining factor for Columbus Grove hard money lenders — in addition, they evaluate the property, its market valuation, its location, and its potential to bring back their investment if things should not go as planned. Adding to that, if the applicant can demonstrate prior experience in comparable real estate projects, can place down money towards the down payment, and the price of equivalent properties in the neighborhood works in his favor, he stands a very good likelihood of being approved to obtain a hard money real estate loan.
Locating a hard money lender in Columbus Grove to fund your flipping business is not difficult, provided that the opportunity before you is promising and has the right potential for returns. Enter your info into the contact form on this page or give us a call to talk about your property.
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