Hard Money Loans in Covington
Suppose you've run into this truly good deal for a fix and flip property located in a great location, and you're either an experienced real estate investor or a first-timer who is looking to try his hand at flipping. You've probably heard that competent property flippers, such as the husband and wife on HGTV's Flip or Flop, have a remarkable average return of around forty to fifty thousand dollars. And yes, they are helped in a big way as a result of their professional experience, auction expertise and familiarity with hard money loans. With that being said, you've recently been developing your rehab and remodeling skills, have a very good building contractor ready to go and are confident that you're capable of doing a stellar job on this house.
But where do you find the needed financing for home flipping? Should you apply for a normal loan via a bank, you will end up waiting somewhere around 4-8 weeks up until the time the money is approved and the funds are accessible. With the sellers seeking a fast closing, that doesn't seem like a good idea to you whatsoever.
On top of this, banks have already been tightening their lending criteria in recent years, rendering it more tough for someone to obtain a conventional home loan if their credit rating is not flawless or he does not possess a regular salaried occupation. So does that leave you with no option, but to drop your dream of getting into rehabbing? Under no circumstances, particularly when Covington hard money loans can help you accomplish great things in the real estate market.
A hard money home loan in Covington offers you what is considered essential to most real estate deals — a quick closing of only a couple of weeks and more often than not less. Plus, the LTV value can range up to 70% of the property value, as evaluated by a certified appraiser. On the surface, hard money real estate loans, with starting lending rates of 10%, seem to be more costly than bank financing. But the term lengths for these loans tend to be comparatively short, making the interest rate much less significant. The price tag on such short-term loans should be looked at much like every other expenditure that you would need to meet for the project. And as soon as you have flipped the property or home, recuperating this expense is the exact same as recuperating the expense for the bathroom updates you did.
Besides, hard money mortgages are easy qualifying, regardless if you have less-than-perfect credit. Covington hard money lenders do not take on a loan solely according to the applicant's credit score — instead they additionally evaluate the home, its value and location, and the home's capacity to pay back the loan by itself. Other criteria that affect an individual's acceptance for a hard money real estate loan include what amount of money he can put into a down payment, his past experience being a real estate investor, and selling price of comparable, fairly recently sold residences in the area.
So in the event you come across a good and lucrative investment opportunity, feel comfortable knowing you will have a hard money lender in Covington, equipped to loan you the cash that you need. Complete the contact form or get in touch with us via phone to talk about your property or properties.
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