Hard Money Loans in Columbus
Suppose that you've encountered this excellent deal for a fix and flip property located in a terrific neighborhood, and you're either a skilled real estate investor or a newbie who really wants to try his hand at flipping. Professional residential home flippers, much like the young married couple on Flip or Flop, HGTV's reality flipping show, are capable of hauling in a gain of $40-$50k on average. It's fair to say their rehabbing experience, knowledge of hard money loans, familiarity with the housing market, and auction talents have played an important part in their success. Nevertheless, you're convinced that your first class rehab and remodeling abilities will help you do a superb job on this property — furthermore, you have already arranged to have one of the best general contractors in town to handle this project.
But where precisely do real estate investors get financing? A conventional lender, say for example a bank, takes a minimum of 1-2 months to approve the financing and deliver the money. So if you happen to be hoping for a fast closing, it is important you recognize that this may set you back by weeks, causing you to miss out on the opportunity.
As well as this, for those who have a sub-optimal credit situation or don't have a regular income source, it is usually harder to qualify for a bank loan, seeing the tighter loan criteria banks have introduced in recent times. So does that mean you have no option, but to give up your aspiration of getting into flipping? Under no circumstances, especially while Columbus hard money loans will assist you to realize many amazing things in the real estate world.
A hard money home loan in Columbus provides what's regarded as crucial to most real estate sales — a very fast closing of only a couple of weeks and more often than not less. In addition, the LTV value can range up to 70% of the property value, as determined by a certified appraiser. On the surface, hard money real estate loans, with starting lending rates of 10%, seem to be costlier than bank financing. But usually, the rate of interest isn't as pertinent for these loans, because they aren't long-term loans. Short-term loans of a couple months to a few years are best looked at in terms of cost of capital, similar to all other expenditures associated with a project. When you have turned the home and have made a good profit, you can recoup this expense from the property or home — much like recouping the cost of brand-new kitchen appliances that you have installed.
Apart from this, hard money mortgages are easy qualifying, even when you have less-than-perfect credit. Columbus hard money lenders don't take on a loan solely according to the customer's credit score — instead they will look at the home, its location and value, and the property's capacity to pay back the financing on its own. Additional criteria that affect an applicant's eligibility for a hard money real estate loan include what amount of money he is in a position to put into a down payment, his prior experience as a real estate investor, and price of comparable, recently sold properties in the area.
So in case you have stumbled on a really great real estate opportunity with a high potential for returns, you've also found yourself a hard money lender in Columbus who's ready to fund your fix and flip ventures. Complete the contact form or call us to discuss the property you have in mind.
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