Hard Money Loans in Columbus
An outstanding buy on a fix and flip opportunity in a good neighborhood all of a sudden shows up — sounds too good to be true. You've probably heard that competent house flippers, much like the couple on HGTV's Flip or Flop, enjoy an impressive average profit of around forty to fifty thousand dollars. And without a doubt, they are aided in a big way by their professional know-how, auction skills and familiarity with hard money loans. Still, your rehab and renovation knowledge isn't bad either — in any case, you have already identified the right licensed contractor to take on this home.
But how do you find the necessary funding for flipping? When you approach a regular lender, like a bank for funding, it can take no less than four to eight weeks for your acceptance to come through and your funds to be distributed. Due to the fact the home owners are looking for a fast closing, that does not seem like a wise idea to you in the slightest.
With banks bringing in tougher loan criteria in recent years, it has become much harder for a self-employed person to get a mortgage loan, especially if his credit situation is not flawless. So will a lack of funds stop you from sticking to your aspirations? Certainly not, because you can always go the Columbus hard money loan route to fund your home renovating project.
A hard money home loan in Columbus provides what is probably most essential to real estate investors — a quick closing in as few as 14 days. Further, loans are made up to 70% loan-to-value of the as-is house's valuation, as established by a professional appraiser. With the rates starting off at about 10%, hard money real estate loans might appear, at first glance, to be more pricey compared to traditional bank loans. But usually, the rate of interest is not as relevant for these loans, simply because they aren't long-term loans. Short-term loans of several months to a few years are best looked at in terms of cost of capital, very much like any other expense in connection with a project. Right after you renovate and sell off the home, recovering this expense is the same as recouping the cost of the stainless steel appliances you put in the house.
Aside from that, hard money mortgages are not difficult to qualify for, regardless if you have got below-average credit. Columbus hard money lenders don't authorize a loan solely judging by the borrower's credit score — rather they will examine the property or home, its valuation and location, and the home's capacity to pay back the financing without the help of the person. On top of this, if the individual can demonstrate prior experience in similar real estate projects, can place down money towards the down payment, and the price of comparative homes in the vicinity works to his benefit, he has a very good likelihood of qualifying to obtain a hard money real estate loan.
Finding a hard money lender in Columbus to fund your flipping business is not difficult, provided that the opportunity in front of you is promising and has a strong potential for returns. Complete the form or get in touch with us via phone to talk about your project.
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