Hard Money Loans in Dodge City
Suppose you've run into this excellent deal on a fix and flip property located in an ideal location, and you happen to be either an experienced real estate investor or a newbie who hopes to try his hand at flipping. You may have heard that competent house flippers, similar to the married couple on HGTV's Flip or Flop, turn a remarkable average profit close to forty to fifty thousand dollars. Undoubtedly, you also understand that their results are attributed to the simple fact that they're experts, are proficient in hard money loans, they understand market trends really well and in addition, they are good at working an auction to purchase their houses at a good price. That said, you've likewise been cultivating your rehab and renovation skills, have a very good licensed contractor ready to go and are positive that you're capable of doing a great job on this home.
But capital can be a separate problem altogether. A traditional lender, like for example a bank, takes at least 1-2 months to consent to the financing and deliver the money. With the sellers seeking a fast closing, that doesn't seem like a good idea to you in the slightest.
Furthermore, should you have a sub-optimal credit score or do not have a routine income, it is normally more challenging to qualify for a bank loan, considering the tougher loan requirements banks have introduced of late. So must you stop trying and abandon your aspiration to embark into fix and flips? Absolutely not, seeing as you always have the Dodge City hard money loan alternative.
A hard money home loan in Dodge City gives you what is deemed vital to many real estate transactions — a quick closing of just a couple of weeks and at times less. In addition, the LTV value can go up to 70% of the property's valuation, as estimated by a competent appraiser. With rates starting near 10%, hard money real estate loans might appear, at first, to be more costly compared to traditional bank financing. But when you consider these loans are not long-term loans, the interest rate can be misleading. Short-term loans of a couple months to a handful of years are best approached in terms of cost of capital, much like every other financial outlay associated with a project. And when you have finally turned the property, recouping this expense is comparable to recuperating the expense for the bathroom improvements you did.
What's more, it is simple to obtain a hard money mortgage, even when your credit situation is not that superb. As an alternative for focusing strictly on the person's credit score or net income, Dodge City hard money lenders, who could be a privately owned company or an individual person, approve a loan as a result of evaluating the home value, how easy it will be to market, where it is located, and the odds of recouping their capital if they have to foreclose the loan. The total amount that an individual can put down in advance for the property, his past real estate experience, and selling price of equivalent homes in the same vicinity are additional details that go into establishing a borrower's eligibility for a hard money real estate loan.
So any time you run into an outstanding and lucrative investment opportunity, rest assured you'll have a hard money lender in Dodge City, equipped to loan you the money you'll need. Submit the contact form or get in touch with us via phone and let's talk about the property or properties you have in mind.
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