Hard Money Loans in Dearborn
Imagine you've encountered this truly good bargain on a fix and flip property you found in an ideal location, and you happen to be either a seasoned real estate investor or a first-timer who is looking to try his hand at flipping. Most folks know that knowledgeable professional flippers, along the lines of Tarek and Christina El Moussa who do HGTV's reality home flipping series, Fix or Flop, can readily generate an average profit margin of $40,000 to $50,000 in their rehab business. No need to explain that their past experiences rehabbing, understanding of hard money loans, familiarity with the housing market, and auction talents have been large factors to their success. On the other hand, you are assured that your superb rehab and renovation knowledge will assist you to do a quality job on the house — what's more, you have already lined up one of the most sought after building contractors in the business to handle this job.
But financing is usually a separate issue entirely. A conventional lending institution, say for example a bank, takes a minimum of one to two months to approve the loan and provide the money. Since the majority of home owners wish to have a fast closing, it may be advisable to start seeking out some other funding options.
Furthermore, should you have a less-than-perfect credit situation or don't have a regular income, it is usually harder for you to be eligible for a bank loan, considering the tighter loan requirements banks have issued as of late. So will a lack of funding keep you from pursuing your dream? Under no circumstances, particularly when Dearborn hard money loans will assist you to achieve great things in real estate.
If you decide to obtain a hard money home loan in Dearborn, you have access to what's probably most essential to real estate offers across the country — a very fast closing of around 14 days. Aside from that, loan amounts can be done for up to 70% loan-to-value of the "as is" home's valuation, as established by a licensed appraiser. A number of people regard hard money real estate loans to be more costly than ordinary loans, since the interest rates for such loans often start at 10%. But once you appreciate that these are not long-term mortgage loans, the interest rate can be misleading. When it comes to short-term loans of a handful of years or even less, you should think about them the same as you might for any other expense for the project. And as soon as you have finally sold the property or home, recovering this expense is comparable to recuperating the expense for the bathroom upgrades you did.
Besides, hard money mortgages are not hard to qualify for, regardless if you have bad credit. Dearborn hard money lenders do not authorize a loan strictly judging by the borrower's credit score — rather they also look at the property, its value and location, and the home's capacity to pay back the financing without the help of the borrower. The total amount that a borrower can put down beforehand for the home, his past real estate experience, and price range of comparative properties in the area are additional factors that go into determining a borrower's qualification for a hard money real estate loan.
Locating a hard money lender in Dearborn to fund your renovation project is not very challenging, provided that the opportunity before you is promising and has the right potential for returns. Enter your info into the form on this page or call us and let's discuss your property or properties.
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