Hard Money Loans in Danville
Suppose you've encountered this excellent bargain for a fix and flip property in a great location, and you happen to be either a seasoned real estate investor or a newbie who really wants to try his hand at flipping. You may have heard that competent house flippers, like the couple on HGTV's Flip or Flop, have a remarkable average return close to forty to fifty thousand dollars. Undoubtedly, you also are aware that their results can be attributed to the fact that they are professionals, are well versed in hard money loans, they know market trends quite well and in addition, they know how to work a public auction for getting a good price. With that being said, you have likewise been brushing up your rehab and renovation knowledge, have a very good contractor lined up and are positive that you're capable of doing an impressive job for this house.
But financing is often a separate problem entirely. A conventional lender, like for example a bank, takes a minimum of 1-2 months to authorize the financing and hand over the capital. So if you're hoping for a fast closing, you need to be aware that this could set you back by a couple weeks, making you miss out on the sale.
To add to it, banks have already been tightening up their lending criteria as of late, which makes it tough for someone to obtain a traditional home loan if their credit circumstances are not flawless or he does not possess a regular salaried occupation. So should you give up and forego your ambition to embark into the real estate market? Not at all, especially while Danville hard money loans can help you realize great things in the real estate world.
A hard money home loan in Danville offers you what is considered imperative to many real estate sales — a quick closing of only a couple of weeks and sometimes even less. Further, loans can be made up to 70% loan-to-value of the "as is" home's valuation, as calculated by a professional appraiser. With loan rates starting around 10%, hard money real estate loans may look, at first glance, to be higher in price when compared with conventional bank loans. But once you understand these loans are not long-term loans, the rate may be misleading. When it comes to short-term loans of several years or even less, you should consider them the same as you would for any other expenditure for your project. Once you've resold the property or home and have made a good financial gain, you'll be able to reclaim this expense from the home — very much like recouping the money spent on the brand-new home appliances that you installed.
Aside from that, hard money mortgages are not hard to qualify for, even if you have got a low credit score. Instead of focusing exclusively on the applicant's credit score or source of income, Danville hard money lenders, who can be a private company or an individual, say yes to a loan as a result of analyzing the property value, how easy it will be to market, where it is located, and the odds of recouping their capital in case of foreclosure. On top of that, if the borrower can demonstrate past experience in comparable real estate projects, can put down cash for the down payment, and the value of equivalent houses in the vicinity works in his favor, he stands a really good shot of qualifying to get a hard money real estate loan.
So any time you come across a good and lucrative flipping opportunity, feel comfortable knowing you'll have a hard money lender in Danville, prepared to lend you the money you may need. Fill out the form on this page or call us to discuss the property you have in mind.
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