Hard Money Loans in Douglas
Suppose you've come across this excellent deal for a fix and flip property you found in an ideal location, and you're either a skilled real estate investor or a newbie who hopes to try out flipping houses. You may have heard that professional home flippers, similar to the couple on HGTV's Flip or Flop, enjoy an impressive average return near forty to fifty thousand dollars. No need to explain that their past experiences rehabbing, understanding of hard money loans, familiarity with the market, and auction skills have had a big role in their success. Still, your rehab and renovation skills aren't that bad either — besides, you've already found an ideal licensed contractor to tackle the project.
But how can you obtain the needed capital for home flipping? A standard lender, say for example a bank, takes a minimum of 1-2 months to approve the mortgage and deliver the funds. Due to the fact all the sellers want a fast closing, that does not seem like a good idea to you at all.
With banks establishing tougher loan criteria in the past few years, it's become more difficult for a self-employed individual to obtain a home loan, especially if his credit rating is not optimal. So does that mean you have no option, but to drop your ambition of getting into home flipping? Most certainly not, seeing as you also have the Douglas hard money loan option.
If you apply for a hard money home loan in Douglas, you're going to get what's probably most important to real estate negotiations throughout the country — a very fast closing of about two weeks. And additionally, loans are made up to 70% loan-to-value of the as-is value, as deemed by a licensed appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, could be seen as higher priced than bank lending products. But when you appreciate that these loans are not long-term loans, the rate may be misleading. The price tag on such short-term loans should be looked at on par with every other financial outlay that you would need to meet pertaining to the project. Right after you remodel and sell the home, recouping this expense is just like recuperating the money you spent for home appliances you installed in the house.
Aside from that, hard money mortgages are easy qualifying, even if you posses very bad credit. Instead of focusing strictly on the applicant's credit score or income, Douglas hard money lenders, who may be a private company or an individual, say yes to a loan as a result of assessing the home value, how easy it will be to market, where it is located, and the odds of recovering their capital in case of foreclosure. Adding to this, if the applicant can demonstrate prior experience in comparable real estate projects, can put down cash towards a down payment, and the cost of comparable homes in the vicinity works to his benefit, he stands a really good likelihood of qualifying to get a hard money real estate loan.
So in case you have found a wonderful fixer-upper with a huge chance of returns, you have also found yourself a hard money lender in Douglas who's prepared to finance your rehab project. Submit the contact form or get in touch with us via phone and let's talk about your property or properties.
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