Hard Money Loans in Dubuque
Suppose you've run into this truly good bargain on a fix and flip property you found in an ideal location, and you happen to be either a skilled real estate investor or a first-timer who really wants to try his hand at flipping. A majority of people know that skilled professional flippers, such as Tarek and Christina El Moussa who star in HGTV's reality flipping series, Fix or Flop, are able to make an average profit of forty to fifty thousand dollars on their flips. And indeed, they are aided in a big way via their professional knowledge, auction skills and familiarity with hard money loans. With that being said, you have also been developing your rehab and remodeling skills, have a very good licensed contractor arranged and are certain that you're capable of doing a bang up job on this home.
But money is usually a separate question altogether. When you apply for a regular loan from the bank, you will have to wait around somewhere around one to two months until eventually the mortgage loan is authorized and your money is readily available. Considering that the sellers are seeking a fast closing, that does not appear to be a good idea to you in the slightest.
With banks introducing tougher loan guidelines in the past several years, it has become tougher for a self-employed person to find a home loan, particularly if his credit score is not flawless. So does this mean you are without an option, but to abandon your aspiration of venturing into the fix and flip business? Under no circumstances, particularly when Dubuque hard money loans will assist you to achieve great things in the real estate world.
If you should opt for a hard money home loan in Dubuque, you're going to get what's perhaps most vital to real estate purchases across the country — a very fast closing of approximately a couple weeks. Plus, the LTV value can reach up to 70% of the home value, as evaluated by a certified appraiser. With lending rates starting off at about 10%, hard money real estate loans might appear, initially, to be more costly in comparison with traditional bank financing. But in reality, the lending rate isn't as pertinent for these loans, given that they aren't long-term financing. The price of such short-term loans should be looked at much like every other expenditure that you would encounter during the project. When you have turned the house and have made a good return, you'll be able to reclaim this expense from the home — just like recovering the cost of brand-new appliances for the kitchen that you installed.
What's more, it isn't difficult to obtain a hard money mortgage, even when your credit rating is not that great. Dubuque hard money lenders don't take on a loan exclusively on the basis of the customer's credit score — rather they additionally analyze the property or home, its location and value, and the property's capacity to pay back the financing without the help of the borrower. Other criteria that affect an applicant's acceptance for a hard money real estate loan can include how much money he can put towards a down payment, his former experience as a real estate investor, and selling price of comparative, recently sold residences in the neighborhood.
So if you have stumbled upon a wonderful fixer-upper with a significant chance of returns, you have also found yourself a hard money lender in Dubuque that's prepared to finance your fix and flip project. Fill out the form or get in touch with us via phone and let's discuss your property.
A loan specialist will be in touch shortly