Hard Money Loans in Douglas
A fabulous deal on a fix and flip opportunity located in a very good subdivision shows up out of the blue — seems too good to be true. A majority of people know that expert professional flippers, like Tarek and Christina El Moussa from HGTV's reality home flipping show, Fix or Flop, can generate an average profit of forty to fifty thousand dollars on their home projects. And sure, they are helped in a big way due to their professional experience, auction skills and familiarity with hard money loans. That said, you have also been cultivating your rehab and renovation skills, have got a building contractor ready to go and are positive that you're capable of doing a bang up job on this house.
But funding can be a different question altogether. In the event you opt for a traditional loan via a bank, you will have to wait around roughly one to two months up until the financing is authorized and the funds are readily available. Due to the fact the sellers are looking for a fast closing, that doesn't appear like a wise idea to you whatsoever.
On top of this, banks have already been tightening up their lending criteria in recent years, which makes it difficult for people to get an ordinary home loan if their credit situation is not perfect or he does not possess a regular salaried profession. So does this leave you with no option, but to give up your ambition to venture into rehabbing? Most certainly not, seeing as you also have the Douglas hard money loan option.
A hard money home loan in Douglas offers you what is deemed essential to most real estate deals — a very fast closing of only a couple of weeks and more often than not less. Aside from that, loans can be made up to 70% loan-to-value of the "as is" house value, as established by a licensed appraiser. With the rates starting at about 10%, hard money real estate loans may look, at first, to be more pricey compared to conventional bank financing. But in reality, the lending rate isn't as relevant for these loans, simply because they aren't long-term loans. When it comes to short-term loans of one or two years or even less, you should think of them much like you would other expenditures for the project. Once you've resold the home and have made a good profit, you'll be able to get back this expense from the home — the same as recuperating the cost of brand-new appliances for the kitchen that you have put in.
What's more, it isn't difficult to qualify for a hard money mortgage, regardless if your credit situation is not that impressive. As an alternative for focusing entirely on the applicant's credit score or income, Douglas hard money lenders, who may be a privately owned company or an individual person, authorize a loan as a result of analyzing the property value, ease of marketability, its location, and the odds of recuperating their capital in the event of foreclosure. Additional variables that influence a borrower's approval for a hard money real estate loan include how much money he is able to put into a down payment, his former experience being a real estate investor, and price of comparative, recently sold residences in the area.
So if you have found a wonderful fixer-upper with a significant potential for returns, you've also found yourself a hard money lender in Douglas that's happy to provide funding for your flipping ventures. Submit the form on this page or call us and let's talk about the property or properties you have in mind.
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