Hard Money Loans in Commerce
A fabulous bargain on a fix and flip property in a good subdivision shows up out of the blue — sounds so good that it is hard to believe. Most folks know that expert professional flippers, like Tarek and Christina El Moussa who do HGTV's reality flipping series, Fix or Flop, can generate a typical profit of $40,000 to $50,000 on their flips. It goes without saying their past experiences rehabbing, understanding of hard money loans, expertise in their housing market, and auction talents have played a significant role in their successes. Still, your rehab and remodeling skills aren't bad either — in any case, you have already found a good building contractor to start the home.
But how exactly can real estate investors find financing? If you get in touch with a common lender, much like a bank for financing, it's in all likelihood going to take at least four to eight weeks for your acceptance to come through and the funds to be furnished. So if you will be hoping for a fast closing, it's important to understand that this will set you back by a couple of weeks, causing you to lose out on the house.
To add to it, banks have been tightening up their lending requirements as of late, rendering it more tough for someone to obtain an ordinary home loan if their credit score is not flawless or he does not have a regular salaried profession. So will a shortage of funding stop you from sticking to your aspirations? By no means, particularly while Commerce hard money loans will assist you to achieve many amazing things in real estate.
If you apply for a hard money home loan in Commerce, you have access to what's perhaps most essential to real estate purchases throughout the country — a fast closing of approximately two weeks. And additionally, financing can be done for up to 70% loan-to-value of the "as is" property value, as deemed by a licensed appraiser. At first glance, hard money real estate loans, with starting interest rates of 10%, could be seen as costlier than bank lending options. But when you appreciate that these loans are not long-term mortgage loans, the rate of interest tends to be misleading. The price of such short-term loans should be evaluated much like every other expense that you would encounter during the project. After you fix up and sell the property, recovering this expense is the same as recovering the expense for home appliances you put in the home.
Also, it's easy to qualify for a hard money mortgage, even if your credit rating is not that impressive. The borrower's credit score will not be the primary determining factor for Commerce hard money lenders — they also evaluate the home, what is it valued at, where it is located, and its potential to return their investment if things do not go as planned. Other factors that affect a borrower's approval for a hard money real estate loan can include the amount he is able to put into a down payment, his former experience being a real estate investor, and price of comparative, fairly recently sold homes nearby.
Searching for a hard money lender in Commerce to finance your fix and flip endeavor is not difficult, so long as the opportunity before you is promising and offers a good prospect for returns. Fill out the contact form or give us a call to discuss the project you have in mind.
A loan specialist will be in touch shortly