Hard Money Loans in Columbus
You discovered this phenomenal opportunity to renovate and flip this nice old property in a good area and it looks like the deal you've been wanting for a long time. Most folks know that capable professional flippers, such as Tarek and Christina El Moussa from HGTV's reality flipping series, Fix or Flop, are able to turn a typical profit margin of forty to fifty thousand dollars on their home projects. No need to explain that their rehabbing experience, understanding of hard money loans, expertise in their market, and auction talents have been large factors to their successes. Still, your rehab and remodeling skills aren't bad either — in any case, you've already identified an ideal licensed contractor to take on the home.
But how do you obtain the necessary funding for home flipping? Should you get in touch with a standard lending institution, like a bank for a mortgage loan, it's very likely going to take, at the very least, 4-8 weeks for the approval to come through and the money to be accessible. So if you happen to be hoping for a fast closing, you need to understand or know that this will cost you a couple weeks, making you lose out on the home.
What's more, for those who have a less-than-perfect credit rating or do not receive a regular source of income, it can be harder for you to be eligible for bank financing, considering the tighter loan guidelines banks have introduced lately. So will a shortage of funds prevent you from pursuing your dream? By no means, considering that you can always use the Columbus hard money loan approach to pay for your flipping project.
Should you apply for a hard money home loan in Columbus, you have access to what is perhaps most essential to real estate purchases across the country — a fast closing of roughly 2 weeks. Aside from that, loans can be done for up to 70% loan-to-value of the as-is property's valuation, as established by a licensed appraiser. With the interest rates starting off around 10%, hard money real estate loans might seem, at first glance, to be more expensive in comparison with conventional bank loans. But usually, the interest rate isn't as relevant for these loans, because they are not long-term financing. Short-term loans of a couple of months to a handful of years are best looked at in terms of cost of capital, very much like every other expenditure in connection with a project. After you fix up and sell off the home, recouping this expense is just like recovering the money you spent for home appliances you put in the property.
Additionally, it's easy to qualify for a hard money mortgage, even if your credit rating is not that extraordinary. Columbus hard money lenders don't authorize a loan strictly based on the person's credit score — instead they will analyze the home, where it is located and how much it is worth, and the property's ability to pay back the financing by itself. Adding to this, if the applicant can demonstrate past experience in equivalent real estate projects, can put down cash towards the down payment, and the value of equivalent houses in the neighborhood works to his benefit, he will have a really good likelihood of being eligible to obtain a hard money real estate loan.
So in the event you come across a really good and profitable flipping opportunity, rest assured you will have a hard money lender in Columbus, willing to loan you the funds you will need. Enter your info into the form or call us and let's talk about the project you have in mind.
A loan specialist will be in touch shortly