Hard Money Loans in Cuthbert
Suppose you've encountered this truly good deal for a fix and flip property you found in an ideal location, and you happen to be either an experienced real estate investor or a first-timer who wants to try his hand at flipping. You may have heard that professional house flippers, such as the married couple on HGTV's Flip or Flop, turn a remarkable average return near $40,000 – $50,000. It's fair to say their rehabbing experience, understanding of hard money loans, expertise in their housing market, and auction skills have been large factors to their successes. Still, your rehab and remodeling knowledge isn't that bad either — besides, you've already found the right general contractor to handle this project.
But capital is usually a different question altogether. A typical lender, say for example a bank, takes no less than one to two months to consent to the financing and hand over the funds. Given that home owners prefer a fast closing, you may want to begin looking for some other funding options.
Furthermore, if you have a less-than-perfect credit score or do not receive a routine source of income, it is usually more challenging to obtain bank financing, considering the tighter loan criteria banks have put in place as of late. So does that leave you with no option, but to abandon your dream of getting into the fix and flip business? By no means, on the grounds that you could always go the Cuthbert hard money loan route to finance your home renovating project.
A hard money home loan in Cuthbert offers what's deemed crucial to most real estate deals — a quick closing of just a few weeks and at many times less. Further, financing can be done for up to 70% loan-to-value of the as-is home's valuation, as deemed by a qualified appraiser. With the lending rates starting off around 10%, hard money real estate loans might seem, at first, to be more pricey compared to traditional bank financing. But the lengths of these loans are relatively short, which makes the interest rate much less significant. When it comes to short-term loans of one or two years or even less, you should think of them identical to any other expenditure for your project. After you fix up and resell the home, recuperating this expense is just like recovering the cost of the new kitchen appliances you put in the place.
Moreover, even a person with weak credit will be able to qualify for a hard money mortgage. Cuthbert hard money lenders don't approve a loan solely according to the borrower's credit score — instead they additionally evaluate the home, its location and value, and the home's capacity to pay back the financing independent of the person. On top of this, if the individual have proven experience in similar real estate endeavors, can place down cash for the down payment, and the cost of equivalent homes in the vicinity works to his benefit, he stands a good likelihood of being approved for a hard money real estate loan.
So any time you come across a really good and lucrative flipping opportunity, relax knowing you will have a hard money lender in Cuthbert, able to lend you the money you may need. Complete the form or call us and let's talk about your project.
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