Hard Money Loans in Creve Coeur
You discovered this amazing opportunity to rehab and flip this wonderful out of date house in a very good part of town and it seems like the deal you've been expecting for quite a while. Most folks know that knowledgeable professional flippers, such as Tarek and Christina El Moussa who do HGTV's reality flipping show, Fix or Flop, can make a typical profit of $40,000 to $50,000 on their home projects. And without a doubt, they are helped in a big way via their professional experience, auction abilities and familiarity with hard money loans. Still, your rehab and remodeling skills aren't bad either — besides, you have already located the right building contractor to tackle this project.
But where can you find the needed financing for flipping? If you meet with a customary lending institution, like a bank for a mortgage loan, it's likely going to take at least thirty to sixty days for the acceptance to come through and the funds to be given out. So if you will be anticipating a fast closing, it is important you understand that this will cost you weeks, causing you to lose out on the opportunity.
With banks adding more challenging loan standards in recent years, it is now more challenging for a self-employed individual to obtain a home loan, especially if his credit circumstances are not optimal. So should you admit defeat and forego your desire to venture off into the real estate market? Certainly not, given that you also have the Creve Coeur hard money loan option.
A hard money home loan in Creve Coeur provides what is probably most essential to real estate investors — a fast closing time of as little as 14 days. Also, hard money lenders can approve loans up to 70% LTV of the property or home's valuation, as established by a qualified third-party evaluator. With the interest rates starting out around 10%, hard money real estate loans may seem, initially, to be more pricey in comparison with conventional bank financing. But when you understand these loans are not long-term home loans, the interest rate tends to be misleading. As it pertains to short-term loans of several years or even less, you should think of them the same as you might for every other expense for the project. And once you've flipped the property, recouping this expense is the exact same as recovering the expense for the bathroom improvements you did.
In addition, even a person with poor credit will be able to qualify for a hard money mortgage. Instead of focusing primarily on the applicant's credit score or net income, Creve Coeur hard money lenders, who could be a privately owned company or an individual person, say yes to a loan after analyzing the property value, ease of marketability, its location, and the possibility of recuperating their money in case of foreclosure. Adding to this, if the individual have proven experience in equivalent real estate projects, can put down money towards a down payment, and the price of similar properties in the neighborhood works to his benefit, he has a very good chance of being eligible to obtain a hard money real estate loan.
Locating a hard money lender in Creve Coeur to fund your real estate project is not hard, provided that the opportunity in front of you is promising and has the right prospect for returns. Enter your info into the form on this page or call us to discuss the property or properties you have in mind.
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