Hard Money Loans in Dexter
An outstanding deal on a fix and flip property located in a nice area of the city shows up out of the blue — seems so good that it is difficult to believe. Professional house flippers, like the young couple on Flip or Flop, HGTV's reality flipping series, are able to bring in a profit of $40-$50k on the majority of projects. And yes, they are helped in a major way by their professional knowledge, auction abilities and understanding of hard money loans. That said, you've also been brushing up your rehab and remodeling knowledge, have got a general contractor ready for the project and are certain that you're capable of doing a stellar job for this home.
But how can you obtain the needed funding for home flipping? When you apply for a normal loan via a bank, you will end up waiting approximately 1-2 months until the money is authorized and your funds are available. With the home owners seeking a fast closing, that doesn't appear like a wise idea to you whatsoever.
With banks adding more challenging loan requirements in the past several years, it is more challenging for a self-employed individual to get a mortgage loan, particularly if his credit rating is not perfect. So does this mean you have no option, but to give up your aspiration of venturing into rehabbing? Never, due to the fact you could always go the Dexter hard money loan route to fund your rehab project.
A hard money home loan in Dexter gives you what's viewed as vital to most real estate deals — a very fast closing of just a few weeks and sometimes less. Furthermore, hard money lenders are able to do funding up to 70% LTV of the home's valuation, as established by a professional third-party appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, could be seen as higher in price than bank lending products. But the time frames of these loans are much shorter, which means the interest rate is far less important. The price of such short-term loans ought to be viewed much like every other expense that you will have to meet pertaining to the project. And once you've sold the property or home, recuperating this expense is identical to recovering the expense for the bathroom or other improvements you did.
In addition, even a person with bad credit can easily qualify for a hard money mortgage. Dexter hard money lenders do not approve a loan solely judging by the borrower's credit score — rather they will assess the home, its location and value, and the property's capability to pay back the financing without the help of the person. The total amount that an individual can put upfront for the house, his real estate experience, and selling price of equivalent properties in the vicinity are additional factors that go into ascertaining an applicant's suitability for a hard money real estate loan.
Finding a hard money lender in Dexter to finance your flipping business is not very challenging, so long as the opportunity in front of you is promising and has the right potential for returns. Complete the contact form or call us and let's talk about your property or properties.
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