Hard Money Loans in Columbus
There's this amazing possibility for rehabbing and flipping this wonderful old property or home in a very good part of town and it seems like the one you've been expecting for quite a while. Everyone knows that expert professional flippers, like Tarek and Christina El Moussa who do HGTV's reality flipping program, Fix or Flop, can readily earn a typical profit margin of $40,000 to $50,000 on their flips. Naturally, you also recognize that their results can be attributed to the simple fact that they're industry experts, are knowledgeable in hard money loans, they understand the marketplace really well and they also know how to work an auction to purchase their homes at a good price. With that being said, you've recently been brushing up your rehab and renovation knowledge, have a very good building contractor ready for the project and are positive that you're capable of doing a stellar job on this property.
But financing is often a different question entirely. In the event you meet with a regular lender, such as a bank for financing, it can take a minimum of thirty to sixty days for the acceptance to come through and the money to be accessible. So if you will be looking for a fast closing, it is important to recognize that this may cost you weeks, causing you to lose out on the sale.
Furthermore, should you have a sub-optimal credit rating or don't have a consistent income source, it may be more challenging for you to obtain a bank loan, seeing the more stringent loan guidelines banks have introduced of late. So should you stop trying and forego your aspiration to embark into real estate? Certainly not, because you also have the Columbus hard money loan alternative.
Should you opt for a hard money home loan in Columbus, you will get what's perhaps most essential to real estate transactions across the country — a fast closing of around 14 days. Also, hard money lenders will often consent to funding up to 70% LTV of the property value, as identified by a professional third-party evaluation. With loan rates starting near 10%, hard money real estate loans may look, initially, to be higher in price as compared with conventional bank financing. But when you appreciate that these loans are not long-term mortgage loans, the rate tends to be misleading. The price tag on such short-term loans ought to be viewed much like any other cost that you might encounter in the course of the project. And once you've flipped the property, recovering this expense is the exact same as recovering the expense for all the bathroom upgrades you performed.
Besides, hard money mortgages are not hard to qualify for, whether or not you have a weak credit score. The customer's credit score isn't the sole determining factor for Columbus hard money lenders — in addition, they look at the property, how much it is worth, its location, and its capability to earn back their investment if things should not work out as intended. How much money a borrower can put down beforehand for the house, his past real estate experience, and price range of comparable properties in the area are additional factors that go into determining an individual's suitability for a hard money real estate loan.
So in case you have found an excellent fixer-upper with a high probability of returns, you've also found yourself a hard money lender in Columbus who is prepared to finance your fix and flip venture. Enter your info into the form on this page or get in touch with us via phone and let's discuss the property you have in mind.
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