Hard Money Loans in DeWitt
Suppose that you've encountered this excellent bargain for a fix and flip property in an ideal location, and you're either an experienced real estate investor or a first-timer who wants to try his hand at flipping. Expert property flippers, like the young couple on Flip or Flop, HGTV's reality flipping series, are capable of bringing in a gain of $40-$50k for the majority of homes. Without question, their rehabbing experience, knowledge of hard money loans, expertise in their market, and auction talents have had a big role in their success. However, you're assured that your first class rehab and remodeling skills will enable you to do a superb job on the property — in addition, you have already lined up one of the most recommended contractors in the area to take on this project.
But funding is a separate problem altogether. Should you get in touch with a customary lending institution, much like a bank for a loan, it's likely going to take, at the very least, 30-60 days for the acceptance to be completed and the money to be accessible. Since most sellers prefer a fast closing, you might need to begin searching for other funding options.
On top of this, banks have already been tightening up their lending requirements in recent years, making it challenging for someone to receive a conventional loan if their credit score is not flawless or he does not possess a regular salaried occupation. So do you have to admit defeat and abandon your ambition to get into fix and flips? Absolutely not, given that you also have the DeWitt hard money loan option.
A hard money home loan in DeWitt provides you with what's perhaps most sought after by real estate investors — a very fast closing in as few as 14 days. What's more, the LTV value can range up to 70% of the home value, as determined by a competent appraiser. With the interest rates starting around 10%, hard money real estate loans may appear, at first glance, to be more expensive as compared with traditional bank lending products. But the time frames of these loans tend to be relatively shorter, which makes the interest rate much less significant. When it comes to short-term loans of several years or even less, you should think of them the same as you might for every other expense for the project. After you rehab and sell off the home, recuperating this expense is the same as recovering the one for new kitchen appliances you placed into the place.
What's more, it isn't difficult to qualify for a hard money mortgage, even in the event your credit rating is not that great. The customer's credit score will not be the primary determining factor for DeWitt hard money lenders — in addition, they look at the home, how much it is worth, its location, and its capability to return their financial commitment if things should not go as intended. Several other factors that have an impact on a borrower's eligibility for a hard money real estate loan can include what amount of money he is in a position to put towards a down payment, his previous experience being a real estate investor, and selling price of comparative, recently sold residences in the neighborhood.
So should you come across a good and worthwhile investment opportunity, feel comfortable knowing you will have a hard money lender in DeWitt, prepared to lend you the funds you need. Complete the contact form or call us and let's discuss your project.
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