Hard Money Loans in Easley
An outstanding buy on a fix and flip property in a nice subdivision suddenly turns up — seems too good to be true. Many people know that knowledgeable professional flippers, such as Tarek and Christina El Moussa from HGTV's reality flipping show, Fix or Flop, can readily earn an average profit of forty to fifty thousand dollars in their rehab business. It goes without saying their past experiences rehabbing, knowledge of hard money loans, familiarity with the housing market, and auction skills have had an important role in their success. Having said that, you've likewise been cultivating your rehab and remodeling knowledge, have a contractor arranged and are confident that you're capable of doing a bang up job on this home.
But money is a separate problem altogether. When you meet with a common lender, like a bank for funding, it very likely will take a minimum of 4-8 weeks for your acceptance to be completed and your money to be dispersed. So if you're wishing for a fast closing, you must realize that this will cost you weeks, making you miss out on the sale.
Furthermore, should you have a sub-optimal credit rating or don't have a conventional income source, it usually is more challenging for you to qualify for bank financing, considering the tighter loan criteria banks have introduced lately. So will a shortage of financing stop you from sticking with your ambitions? Absolutely not, because you always have the Easley hard money loan alternative.
A hard money home loan in Easley provides you with what is possibly most important to real estate investors — a fast closing time of as little as 2 weeks. What's more, the LTV value can range up to 70% of the place's valuation, as determined by a certified appraiser. Some individuals believe hard money real estate loans to be higher in price than regular loans, considering interest rates for these loans ordinarily start out at 10%. But once you understand these are not long-term loans, the rate can be misleading. As it pertains to short-term loans of one or two years or even less, you should look at them identical to every other expense for your project. After you remodel and sell off the house, recouping this expense is the same as recuperating the one for stainless steel appliances you installed in the house.
Aside from that, hard money mortgages are not difficult to qualify for, regardless if you have a weak credit score. Easley hard money lenders do not approve a loan strictly according to the applicant's credit score — rather they also examine the property, where it is located and what it is worth, and the home's ability to pay back the loan without the assistance of the person. How much of their own money an applicant can put down beforehand for the home, how much practical experience he has in real estate investments, and selling price of equivalent homes in the same area are other factors that go into determining an individual's suitability for a hard money real estate loan.
So should you come across a really good and lucrative flipping opportunity, be assured you'll have a hard money lender in Easley, prepared to loan you the funds that you need. Enter your info into the form or give us a call and let's discuss the project you have in mind.
A loan specialist will be in touch shortly