Hard Money Loans in Duluth
Suppose you've stumbled upon this excellent deal for a fix and flip property in an ideal location, and you happen to be either a skilled real estate investor or a newbie who wants to try his hand at flipping. Many people know that expert professional flippers, along the lines of Tarek and Christina El Moussa who star in HGTV's reality home flipping program, Fix or Flop, are able to generate a typical profit of $40,000 to $50,000 when they flip properties. And indeed, they are helped in a major way as a result of their professional experience, auction expertise and understanding of hard money loans. Nonetheless, your rehab and remodeling skills aren't bad either — in any case, you have already identified the right licensed contractor to handle the home.
But money is often a separate issue altogether. If you go after a normal loan via a bank, you will wind up waiting around somewhere around 1 to 2 months up until the mortgage loan is authorized and your money is readily available. Thus if you are hoping for a fast closing, you must realize that this may set you back by weeks, making you lose out on the opportunity.
With banks adding tougher loan standards in the last few years, it is more challenging for a self-employed person to find a mortgage loan, especially when his credit situation is not optimal. So does this leave you with no other option, but to give up your ambition of venturing into the fix and flip business? Certainly not, seeing as you also have the Duluth hard money loan alternative.
A hard money home loan in Duluth provides what's perhaps most important to real estate investors — a very fast closing in as few as a few weeks. What's more, the LTV value can reach up to 70% of the home value, as evaluated by a credentialed appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, seem to be more pricey than bank financing. But the term lengths for these loans are comparatively shorter, which makes the rate far less significant. The cost of such short-term loans ought to be viewed on par with any other cost that you would have to meet pertaining to the project. Once you have sold the property and have made a positive gain, you're able to reclaim this expense from the house — much like recouping the money necessary for the brand-new kitchen appliances that you installed.
Apart from this, hard money mortgages are easy qualifying, regardless if you have poor credit. The person's credit score is not the lone deciding factor for Duluth hard money lenders — they also analyze the home, its market valuation, its location, and its potential to return their investment if things should not go as intended. How much a person can put down in advance for the home, his past real estate experience, and selling price of comparable properties in the same vicinity are other details that go into analyzing a borrower's eligibility for a hard money real estate loan.
Locating a hard money lender in Duluth to finance your flipping business is not very challenging, provided that the opportunity that lies ahead of you is promising and has a good prospect for returns. Fill out the contact form on this page or give us a call and let's talk about the property you have in mind.
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