Hard Money Loans in Concord
There's this phenomenal possibility for renovating and flipping this nice old condo in a very good part of town and it seems a lot like the one you've been eagerly waiting on for quite a while. You may have heard that professional home flippers, such as the married couple on HGTV's Flip or Flop, enjoy an impressive average profit margin of around forty to fifty thousand dollars. Without question, their past experiences rehabbing, understanding of hard money loans, expertise in their market, and auction talents have been major factors to their success. Still, your rehab and renovation skills aren't bad either — aside from that, you have already located the right general contractor to tackle this project.
But financing is usually a separate problem altogether. A typical lender, like for example a bank, takes at the very least 1-2 months to consent to the mortgage and release the capital. Since the majority of home owners would rather have a fast closing, you may want to start seeking out some other financing options.
On top of this, banks have been tightening up their lending requirements as of late, which makes it tough for people to get an ordinary home loan if their credit situation is not flawless or he doesn't have a consistent salaried occupation. So must you give up and abandon your dream to embark into the real estate market? Certainly not, because you could always use the Concord hard money loan approach to pay for your home flipping project.
If you put in an application for a hard money home loan in Concord, you will get what's possibly most important to real estate purchases throughout the country — a fast closing of around 14 days. Plus, the LTV value can reach up to 70% of the property's valuation, as evaluated by a competent appraiser. With the interest rates starting off around 10%, hard money real estate loans might appear, at first glance, to be higher in price as compared with conventional bank lending products. But when you understand these are not long-term mortgage loans, the interest rate tends to be misleading. Short-term loans of a couple of months to a few years are best thought of as cost of capital, similar to every other expense associated with a project. When you have turned the home and have made a good profit, you'll be able to recoup this expense from the property or home — just like recuperating the cost of brand-new home appliances that you have put in.
Moreover, even a person with bad credit can easily qualify for a hard money mortgage. Instead of focusing strictly on the applicant's credit score or income, Concord hard money lenders, who may be a privately owned company or an individual person, authorize a loan as a result of evaluating the home value, how easy it will be to market, its location, and the likelihood of recuperating their capital in case of foreclosure. How much an individual can put upfront towards the property, how much experience he has in real estate investing, and price range of equivalent homes in the area are other details that go into establishing a person's suitability for a hard money real estate loan.
So should you run into a really good and worthwhile investment opportunity, feel comfortable knowing you will have a hard money lender in Concord, ready to lend you the funds that you need. Complete the contact form on this page or get in touch with us via phone and let's talk about the property or properties you have in mind.
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