Hard Money Loans in Columbus
A fantastic bargain on a fix and flip opportunity located in a very good area of the city suddenly turns up — seems too good to be true. A majority of people know that skilled professional flippers, such as Tarek and Christina El Moussa who star in HGTV's reality flipping program, Fix or Flop, can make an average profit of $40,000 to $50,000 on their flips. Without question, their rehabbing experience, understanding of hard money loans, familiarity with the housing market, and auction talents have had a significant part in their success. Having said that, you have also been cultivating your rehab and renovation knowledge, have a very good general contractor lined up and are positive that you're capable of doing an impressive job for this home.
But how do you find the necessary funding for home flipping? If you get in touch with a common lending institution, much like a bank for a mortgage loan, it's in all likelihood going to take, at a minimum, 4-8 weeks for your approval to be completed and the funds to be given out. Considering that all the sellers are looking for a fast closing, that doesn't appear to be a great idea to you at all.
To add to it, banks have already been tightening their lending criteria as of late, rendering it more difficult for someone to obtain an ordinary loan if their credit circumstances are not perfect or he doesn't have a consistent salaried profession. So does this leave you with no other option, but to give up your dream to venture into home renovating? Definitely not, given that you also have the Columbus hard money loan option.
A hard money home loan in Columbus gives you what's deemed essential to most real estate sales — a very fast closing of just a couple of weeks and more often than not even less. Besides that, hard money lenders frequently agree to funding up to 70% LTV of the home's valuation, as estimated by a professional third-party evaluation. With loan rates starting at about 10%, hard money real estate loans may seem, at first glance, to be higher in price compared to traditional bank loans. But the lengths of these loans are comparatively short, which means the rate is much less important. As it pertains to short-term loans of several years or less, you should look at them just like you would other expenses for the project. After you fix up and sell the home, recuperating this expense is no different than recuperating the cost of the home appliances you put in the place.
Apart from this, hard money mortgages are easy qualifying, even when you posses less-than-perfect credit. Columbus hard money lenders do not take on a loan solely on the basis of the person's credit score — instead they will evaluate the property, where it is located and what it is worth, and the property's ability to pay back the financing independent of the applicant. On top of this, if the borrower can demonstrate past experience in similar real estate ventures, can place down money towards a down payment, and the value of similar properties in the vicinity works in his favor, he will have a really good likelihood of qualifying for a hard money real estate loan.
Searching for a hard money lender in Columbus to fund your renovation project is not very hard, assuming that the opportunity that lies before you is promising and has a strong potential for returns. Complete the contact form or call us and let's discuss your property or properties.
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