Hard Money Loans in Commerce City
Suppose you've run into this truly good bargain on a fix and flip property located in an ideal location, and you're either an experienced real estate investor or a newbie who hopes to try out flipping homes. You've heard that veteran house flippers, similar to the married couple on HGTV's Flip or Flop, have a remarkable average return near forty to fifty thousand dollars. And yes, they are helped in a major way due to their professional experience, auction abilities and understanding of hard money loans. Still, your rehab and remodeling knowledge isn't bad either — besides, you have already located an ideal building contractor to start the job.
But money can be a different problem altogether. A traditional lender, like for example a bank, takes at least 1-2 months to consent to the financing and deliver the cash. Since the majority of home owners favor a fast closing, you may have to begin seeking out additional funding alternatives.
What's more, should you have an unfavorable credit situation or don't receive a consistent source of income, it may be harder to obtain a bank loan, with the tougher loan criteria banks have issued as of late. So does this leave you with no other option, but to drop your aspiration of getting into flipping? Certainly not, because you always have the Commerce City hard money loan alternative.
If you obtain a hard money home loan in Commerce City, you're going to get what's probably most essential to real estate offers across the country — a very fast closing of about 2 weeks. Aside from that, loan amounts can be done for up to 70% loan-to-value of the "as is" home's valuation, as determined by a licensed appraiser. On the surface, hard money real estate loans, with starting lending rates of 10%, seem to be higher in price than bank lending products. But the term lengths for these loans are much shorter, which means the interest rate is far less important. As it pertains to short-term loans of several years or even less, you should consider them the same as you might for any other expense for your project. And once you have finally flipped the house, recouping this expense is identical to recouping the expense for all the bathroom or other updates you performed.
Apart from this, hard money mortgages are easy qualifying, even in the event you have a low credit rating. Commerce City hard money lenders don't approve a loan solely on the basis of the customer's credit score — instead they additionally evaluate the property or home, its value and location, and the home's ability to pay back the financing without the assistance of the person. How much a borrower can put upfront towards the property or home, how much experience he has in real estate investments, and price range of comparable properties in the neighborhood are additional factors that go into ascertaining a person's suitability for a hard money real estate loan.
So in the event you come across an outstanding and profitable investment opportunity, rest assured you'll have a hard money lender in Commerce City, prepared to lend you the cash you need. Complete the contact form on this page or get in touch with us via phone and let's discuss the property or properties you have in mind.
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