Hard Money Loans in Dayton
A remarkable bargain on a fix and flip opportunity in a nice neighborhood shows up out of the blue — sounds so good that it's difficult to believe. Most folks know that expert professional flippers, along the lines of Tarek and Christina El Moussa who star in HGTV's reality flipping series, Fix or Flop, can readily turn an average profit of forty to fifty thousand dollars when they flip properties. And indeed, they are helped in a big way by their professional knowledge, auction skills and knowledge of hard money loans. Still, your rehab and remodeling skills aren't bad either — in any case, you've already identified a good contractor to start this job.
But capital is usually a separate problem entirely. A traditional lender, say for example a bank, takes a minimum of one to two months to authorize the loan and hand over the money. Since most sellers would prefer a fast closing, it may be best to begin searching for additional financing alternatives.
To add to it, banks have already been tightening up their lending requirements in recent times, rendering it more challenging for a person to obtain an ordinary home loan if their credit circumstances are not flawless or he does not possess a consistent salaried profession. So does this mean you are without an option, but to drop your dream of getting into flipping? By no means, especially while Dayton hard money loans enable you to achieve many amazing things in the real estate world.
When you opt for a hard money home loan in Dayton, you're going to get what is possibly most essential to real estate transactions throughout the country — a quick closing of approximately fourteen days. In addition, the LTV value can go up to 70% of the home's valuation, as evaluated by a credentialed appraiser. With rates starting near 10%, hard money real estate loans may look, initially, to be more pricey when compared with traditional bank financing. But once you appreciate that these are not long-term home loans, the interest rate may be misleading. Short-term loans of a couple of months to a few years are best looked at in terms of cost of capital, very much like any other expense in connection with a project. Once you have turned the property or home and have made a successful return, you'll be able to get back this expense from the house — much like recouping the cost of brand-new home appliances that you have installed.
In addition, even individuals with poor credit can easily qualify for a hard money mortgage. Rather than focusing strictly on the applicant's credit score or income, Dayton hard money lenders, who could be a private company or an individual, say yes to a loan as a result of evaluating the property value, ease of marketability, where it is located, and the odds of recuperating their capital should they have to foreclose the loan. On top of this, if the borrower have proven experience in similar real estate endeavors, can place down money for the down payment, and the price of comparable properties in the area works to his benefit, he will have a very good likelihood of being approved to get a hard money real estate loan.
So if you have stumbled on a really good fixer-upper with a high potential for returns, you have also discovered a hard money lender in Dayton that is prepared to fund your rehab projects. Enter your info into the form or give us a call to talk about your project.
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