Hard Money Loans in Covington
An outstanding bargain on a fix and flip property in a very good area of the city all of a sudden shows up — seems too good to be true. Most folks know that expert professional flippers, along the lines of Tarek and Christina El Moussa from HGTV's reality flipping program, Fix or Flop, are able to make an average profit margin of $40,000 to $50,000 when they flip properties. Naturally, you also recognize that their results can be attributed to the fact that they're industry experts, are knowledgeable in hard money loans, they understand the marketplace quite well and furthermore, they are good at working an auction to purchase their properties at a good deal. Still, your rehab and remodeling knowledge isn't that bad either — besides, you've already found an ideal licensed contractor to handle this home.
But how do you obtain the needed funding for home flipping? For those who opt for a traditional loan via a bank, you will wind up waiting around approximately one to two months up until the time the financing is approved and your money is readily available. Since most sellers would prefer a fast closing, you might need to begin looking for other financing options.
On top of this, banks have been tightening up their lending requirements in recent times, making it challenging for someone to receive a traditional loan if their credit situation is not flawless or he doesn't have a regular salaried profession. So does this mean you are without an option, but to give up your ambition to venture into home renovating? Not at all, especially while Covington hard money loans can help you accomplish great things in the real estate world.
A hard money home loan in Covington gives you what is probably most sought after by real estate investors — a quick closing time period of as few as 2 weeks. In addition, the LTV value can go up to 70% of the home's valuation, as determined by a certified appraiser. At first, hard money real estate loans, with starting lending rates of 10%, could be seen as higher in price than bank loans. But usually, the lending rate isn't as relevant for these loans, because they will never be long-term financing. The price tag on such short-term loans ought to be evaluated much like every other financial outlay that you will encounter during the project. And as soon as you have flipped the house, recouping this expense is the exact same as recovering the expense for all the bathroom or other updates you did.
Additionally, it's simple to be eligible for a a hard money mortgage, even when your credit situation is not that superb. Covington hard money lenders do not approve a loan strictly judging by the borrower's credit score — rather they will look at the home, its location and value, and the home's capability to pay back the financing on its own. The amount that an individual can put upfront for the property, how much practical experience he has in real estate investing, and selling price of comparative homes in the same vicinity are other details that go into ascertaining an individual's suitability for a hard money real estate loan.
Locating a hard money lender in Covington to finance your real estate project is not hard, as long as the opportunity in front of you is promising and has a good potential for returns. Complete the contact form on this page or give us a call and let's discuss your project.
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