Hard Money Loans in Decatur
Suppose that you've run into this excellent deal on a fix and flip property in a terrific location, and you're either a seasoned real estate investor or a newbie who is looking to try his hand at flipping. You've heard that competent property flippers, similar to the couple on HGTV's Flip or Flop, enjoy an impressive average return of around forty to fifty thousand dollars. No need to explain that their past experiences rehabbing, understanding of hard money loans, familiarity with the housing market, and auction skills have played an important role in their successes. Still, your rehab and renovation skills aren't bad either — besides, you have already found the right general contractor to handle this home.
But where can you get the necessary financing for flipping? A standard lending institution, say for example a bank, takes at least 1-2 months to consent to the loan and deliver the capital. Due to the fact all the home owners are wanting to find a fast closing, that doesn't appear like a wise idea to you at all.
With banks establishing harder loan criteria in the past few years, it's become harder for a self-employed person to get a mortgage loan, particularly if his credit situation is not perfect. So does that leave you with no other option, but to abandon your aspiration of getting into home flipping? Under no circumstances, particularly when Decatur hard money loans enable you to accomplish great things in the real estate market.
If you should put in an application for a hard money home loan in Decatur, you'll get what is perhaps most important to real estate purchases across the country — a quick closing of about 14 days. Aside from that, loan amounts can be made up to 70% loan-to-value of the as-is value, as deemed by a professional appraiser. Some people believe hard money real estate loans to be costlier than customary financing, since the lending rates for these loans commonly start off at 10%. But the term lengths for these loans are rather short, which makes the interest rate less significant. The price of such short-term loans ought to be considered on par with any other expense that you might encounter in the course of the project. When you have turned the home and have made a successful profit, you'll be able to reclaim this expense from the home — the same as recouping the money spent on the brand-new kitchen appliances that you have installed.
Besides, hard money mortgages are not difficult to qualify for, even if you have bad credit. Decatur hard money lenders don't approve a loan solely according to the applicant's credit score — rather they also look at the property or home, its location and value, and the home's capacity to pay back the loan without the help of the borrower. The amount that an individual can put upfront towards the house, his past real estate experience, and price range of comparative homes in the same area are additional factors that go into establishing an individual's qualification for a hard money real estate loan.
If you happen to have found a really good home to flip with a huge potential for returns, you have also discovered a hard money lender in Decatur who is willing to finance your fix and flip venture. Enter your info into the contact form on this page or call us to discuss your property.
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