Hard Money Loans in Constantine
Suppose you've come across this really great deal for a fix and flip property you found in a terrific location, and you're either an experienced real estate investor or a newbie who wants to try his hand at flipping. You may have heard that veteran home flippers, similar to the couple on HGTV's Flip or Flop, turn a remarkable average return close to $40,000 – $50,000. No need to explain that their past experiences rehabbing, understanding of hard money loans, familiarity with the market, and auction talents have been large factors to their successes. However, you're convinced that your first class rehab and remodeling knowledge will enable you to do a superb job on the project — furthermore, you have already arranged to have one of the most recommended building contractors in the business to take care of the project.
But funding can be a separate issue altogether. When you go after an ordinary loan via a bank, you will have to wait around somewhere around 4-8 weeks until the mortgage loan is approved and your funds are readily available. Since the majority of sellers would rather have a fast closing, you may have to start seeking out additional financing options.
With banks bringing in more challenging loan criteria in recent years, it's become more challenging for a self-employed individual to obtain a home loan, especially if his credit situation is not flawless. So must you stop trying and abandon your dream to embark into real estate? Definitely not, given that you also have the Constantine hard money loan option.
A hard money home loan in Constantine provides you with what is perhaps most essential to real estate investors — a very fast closing time period of as few as fourteen days. Aside from that, loans can be done for up to 70% loan-to-value of the "as is" value, as determined by a professional appraiser. A number of people believe hard money real estate loans to be more costly than ordinary loans, considering interest rates of such loans generally start out at 10%. But the term lengths for these loans are relatively short, making the interest rate far less important. Short-term loans of several months to a few years are best understood in terms of cost of capital, the same as every other financial outlay related to a project. And once you have flipped the property or home, recouping this expense is the exact same as recouping the expense for the kitchen and bath updates you performed.
Furthermore, even a person with poor credit will be able to qualify for a hard money mortgage. The applicant's credit score will not be the sole determining factor for Constantine hard money lenders — in addition, they evaluate the property, what is it valued at, where it is located, and its capacity to earn back their financial commitment if things do not go as intended. How much an individual can put down beforehand towards the property, how much practical experience he has in real estate investing, and selling price of comparable properties in the area are additional details that go into analyzing an individual's qualification for a hard money real estate loan.
So in the event you come across a good and profitable investment opportunity, rest assured you'll have a hard money lender in Constantine, prepared to loan you the funds you'll need. Fill out the contact form on this page or get in touch with us via phone to discuss your property or properties.
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