Hard Money Loans in Eagan
There is this outstanding opportunity to rehab and flip this nice old property or home in a good location and it seems a lot like the one you have been anticipating for quite some time. Everybody knows that knowledgeable professional flippers, such as Tarek and Christina El Moussa from HGTV's reality flipping show, Fix or Flop, can make an average profit margin of forty to fifty thousand dollars in their rehab business. No need to explain that their past experiences rehabbing, knowledge of hard money loans, familiarity with the market, and auction skills have been major factors to their successes. Nevertheless, you're convinced that your impressive rehab and remodeling skills will help you do a great job on this project — what's more, you already have arranged to have one of the most sought after general contractors in the area to take care of this job.
But where do real estate investors get financing? If you approach a common lender, such as a bank for financing, it very likely will take, at a minimum, four to eight weeks for your acceptance to be completed and the funds to be given out. Thus if you happen to be wishing for a fast closing, you have to be aware that this may cost you a couple weeks, making you miss out on the house.
On top of this, banks have been tightening their lending standards as of late, rendering it more challenging for a person to obtain a conventional home loan if their credit rating is not flawless or he does not have a consistent salaried occupation. So does this leave you with no other option, but to drop your ambition of venturing into flipping? Most certainly not, seeing as you also have the Eagan hard money loan option.
A hard money home loan in Eagan provides what's regarded as vital to most real estate sales — a quick closing of just a couple of weeks and oftentimes even less. Also, hard money lenders can approve funding up to 70% LTV of the property value, as estimated by a credentialed third-party evaluator. On the surface, hard money real estate loans, with starting interest rates of 10%, seem to be higher in price than bank loans. But in reality, the rate of interest is not as useful a measure for these loans, given that they will never be long-term loans. Short-term loans of a couple of months to a handful of years are best approached in terms of cost of capital, much like any other expense associated with a project. Once you have sold the house and have made a successful return, you're able to reclaim this expense from the home — very much like recuperating the money necessary for the brand-new appliances for the kitchen that you installed.
In addition, even a person with weak credit will be able to be eligible for a hard money mortgage. Eagan hard money lenders don't approve a loan strictly judging by the customer's credit score — instead they also analyze the home, where it is located and how much it is worth, and the home's ability to pay back the loan by itself. On top of that, if the person have proven experience in equivalent real estate projects, can place down money for the down payment, and the cost of equivalent homes in the area works to his benefit, he has got a really good chance of being approved to obtain a hard money real estate loan.
So in case you have stumbled on a really great real estate opportunity with a high prospect of returns, you've also discovered a hard money lender in Eagan who's willing to finance your rehab project. Fill out the form on this page or give us a call to talk about your property.
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