Hard Money Loans in Dowagiac
An outstanding bargain on a fix and flip property located in an excellent area of the city shows up out of the blue — sounds too good to be true. You may have heard that professional property flippers, such as the husband and wife on HGTV's Flip or Flop, have an impressive average profit margin of around $40,000 – $50,000. It goes without saying their rehabbing experience, understanding of hard money loans, familiarity with the market, and auction skills have been large factors to their success. However, you are convinced that your impressive rehab and remodeling skills will enable you to do a superb job for this house — furthermore, you already have lined up one of the best general contractors in the business to handle this project.
But how do real estate investors obtain funds? A standard lender, like for example a bank, takes no less than 1 to 2 months to authorize the mortgage and hand over the money. Given that sellers would prefer a fast closing, it may be best to begin searching for additional financing options.
To add to it, banks have already been tightening their lending requirements in recent times, which makes it hard for a person to obtain a traditional loan if their credit rating is not flawless or he doesn't have a consistent salaried occupation. So will a lack of funding keep you from sticking with your aspirations? Certainly not, due to the fact you could always use the Dowagiac hard money loan approach to pay for your rehab project.
A hard money home loan in Dowagiac can provide what's deemed essential to most real estate deals — a very fast closing of just a few weeks and sometimes even less. Additionally, financing can be made up to 70% loan-to-value of the "as is" property's valuation, as determined by a professional appraiser. At first, hard money real estate loans, with starting lending rates of 10%, could be seen as more pricey than bank loans. But once you appreciate that these are not long-term loans, the rate of interest can be misleading. The cost of such short-term loans ought to be looked at much like any other financial outlay that you will encounter during the project. When you have turned the house and have made a good financial gain, you'll be able to reclaim this expense from the house — the same as recouping the money spent on the brand-new appliances for the kitchen that you put in.
Furthermore, even a person with poor credit can still be eligible for a hard money mortgage. Dowagiac hard money lenders do not approve a loan solely according to the borrower's credit score — rather they additionally evaluate the property or home, its location and value, and the home's ability to pay back the loan independent of the applicant. On top of that, if the borrower can demonstrate prior experience in equivalent real estate ventures, can place down money for a down payment, and the cost of similar homes in the vicinity works in his favor, he has got a very good shot of being approved to get a hard money real estate loan.
So in case you have stumbled on an excellent home to flip with a high prospect of returns, you've also stumbled upon a hard money lender in Dowagiac that is ready to provide financing for your rehab project. Enter your info into the contact form or give us a call to discuss your property or properties.
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