Hard Money Loans in Cooper
There's this phenomenal opportunity to rehab and flip this wonderful outdated home in a good location and it looks a lot like the deal you've been eagerly waiting on for quite some time. Many people know that expert professional flippers, along the lines of Tarek and Christina El Moussa who star in HGTV's reality home flipping series, Fix or Flop, are able to turn an average profit margin of $40,000 to $50,000 when they flip properties. It's fair to say their rehabbing experience, understanding of hard money loans, expertise in their market, and auction talents have had an important role in their success. Still, your rehab and renovation knowledge isn't bad either — aside from that, you have already found the right building contractor to tackle this job.
But where do you find the necessary capital for flipping? Should you opt for a traditional loan via a bank, you will have to wait roughly 1 to 2 months before the mortgage is authorized and the funding is readily available. With the sellers looking for a fast closing, that does not appear like a good option to you at all.
With banks establishing harder loan guidelines in recent times, it is tougher for a self-employed individual to obtain a mortgage loan, especially if his credit situation is not perfect. So does this leave you with no option, but to abandon your aspiration to venture into home renovating? Never, considering that you can always use the Cooper hard money loan approach to pay for your home renovating project.
A hard money home loan in Cooper provides what is viewed as imperative to most real estate deals — a quick closing of only a couple of weeks and sometimes even less. Plus, the LTV value can reach up to 70% of the property's valuation, as evaluated by a credentialed appraiser. Some individuals regard hard money real estate loans to be more costly than customary loans, because the lending rates for such loans typically start at 10%. But usually, the interest rate isn't as useful a measure for these loans, since they are not long-term financing. When it comes to short-term loans of a few years or less, you should look at them identical to any sort of other expense for your project. Once you have turned the property or home and have made a good profit, you'll be able to recoup this expense from the property or home — very much like recovering the cost of brand-new appliances for the kitchen that you've installed.
Additionally, it isn't difficult to qualify for a hard money mortgage, even when your credit situation is not that great. The borrower's credit score isn't the primary deciding factor for Cooper hard money lenders — they also examine the home, how much it is worth, where it is located, and its capability to bring back their investment if things should not work out as intended. Other factors that have an impact on a person's acceptance for a hard money real estate loan can include how much money he is able to put into a down payment, his past experience being a real estate investor, and price range of similar, just recently sold homes in the neighborhood.
So should you come across an outstanding and lucrative investment opportunity, feel comfortable knowing you will have a hard money lender in Cooper, equipped to lend you the cash you'll need. Submit the contact form on this page or give us a call and let's discuss the project you have in mind.
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