Hard Money Loans in Cornelia
You discovered this phenomenal opportunity to rehab and flip this wonderful outdated home in a good area and it looks like the one you have been looking forward to for a long time. You've probably heard that professional home flippers, much like the couple on HGTV's Flip or Flop, have a remarkable average profit of around $40,000 – $50,000. Undoubtedly, you also know that their great results are attributed to the simple fact that they are experts, are knowledgeable in hard money loans, they understand the marketplace quite well and in addition, they know how to work an auction for getting a good deal. However, you're certain that your impressive rehab and remodeling skills will help you do a superb job on this project — furthermore, you already have lined up one of the most sought after building contractors in town to work on the project.
But how can you get the needed financing for home flipping? For those who get in touch with a customary lender, like a bank for a mortgage loan, it is more than likely going to take at least thirty to sixty days for your approval to come through and the funds to be furnished. Thus if you happen to be looking for a fast closing, you need to recognize that this will set you back by weeks, causing you to miss out on the home.
On top of this, banks have been tightening up their lending criteria in recent times, rendering it more tough for people to obtain a regular home loan if their credit circumstances are not perfect or he doesn't have a consistent salaried job. So must you admit defeat and abandon your ambition to embark into the real estate market? Under no circumstances, particularly when Cornelia hard money loans enable you to accomplish great things in the real estate market.
A hard money home loan in Cornelia provides you with what's possibly most crucial to real estate investors — a very fast closing time period of as little as two weeks. Furthermore, hard money lenders will often consent to loans up to 70% LTV of the property value, as identified by a credentialed third-party appraiser. With the loan rates starting out around 10%, hard money real estate loans may look, at first, to be more costly in comparison with conventional bank lending products. But usually, the lending rate isn't as relevant for these loans, since they will never be long-term loans. Short-term loans of several months to a handful of years are best understood as cost of capital, very much like every other expenditure associated with a project. And when you've turned the house, recovering this expense is identical to recouping the expense for all the bathroom or other updates you performed.
In addition, even individuals with weak credit can still qualify for a hard money mortgage. Cornelia hard money lenders do not approve a loan solely according to the borrower's credit score — rather they also examine the property, its location and value, and the home's capacity to pay back the financing without the help of the person. Adding to that, if the applicant can demonstrate prior experience in comparable real estate projects, can place down money for the down payment, and the price of comparable homes in the neighborhood works to his benefit, he will have a really good shot of being eligible to get a hard money real estate loan.
Locating a hard money lender in Cornelia to finance your fix and flip endeavor is not difficult, assuming that the opportunity in front of you is promising and has a good potential for returns. Fill out the contact form or call us to talk about the project you have in mind.
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