Hard Money Loans in East Grand Rapids
A fantastic buy on a fix and flip opportunity in a nice subdivision shows up out of the blue — sounds too good to be true. Most folks know that capable professional flippers, such as Tarek and Christina El Moussa who do HGTV's reality flipping show, Fix or Flop, can readily generate a typical profit of forty to fifty thousand dollars on their home projects. Of course, you also know that their great results are attributed to the simple fact that they're experts, are knowledgeable in hard money loans, they understand the marketplace quite well and they also are good at working an auction to purchase their properties at a good deal. Still, your rehab and remodeling knowledge isn't bad either — aside from that, you've already located an ideal building contractor to tackle this job.
But capital is usually a different issue altogether. A standard lending institution, like for example a bank, takes no less than 1-2 months to approve the loan and provide the cash. So if you will be hoping for a fast closing, you need to understand or know that this may cost you a few weeks, causing you to miss out on the house.
Moreover, for those who have an unfavorable credit situation or do not have a routine income, it may be more challenging to be eligible for a a bank loan, with the more stringent loan requirements banks have introduced as of late. So does that mean you have no option, but to abandon your ambition of venturing into the fix and flip business? Never, because you can always use the East Grand Rapids hard money loan approach to pay for your rehab project.
A hard money home loan in East Grand Rapids promises what's possibly most desired by real estate investors — a fast closing time of as few as fourteen days. And additionally, financing can be made up to 70% loan-to-value of the "as is" house value, as determined by a professional appraiser. With rates starting at about 10%, hard money real estate loans may look, at first, to be higher priced in comparison with traditional bank financing. But usually, the interest rate is not as useful a measure for these loans, since they aren't long-term loans. Short-term loans of a couple months to a few years are best thought of in terms of cost of capital, the same as every other expense in connection with a project. After you remodel and unload the house, recuperating this expense is just like recouping the one for new kitchen appliances you put in the home.
Additionally, it's easy to be eligible for a a hard money mortgage, even if your credit rating is not that impressive. East Grand Rapids hard money lenders do not approve a loan strictly judging by the borrower's credit score — instead they will evaluate the home, its location and value, and the property's capability to pay back the financing by itself. Additional variables that influence a borrower's approval for a hard money real estate loan include how much money he is able to put towards a down payment, his former experience being a real estate investor, and price of similar, fairly recently sold properties in the neighborhood.
So in case you have stumbled on a really great fixer-upper with a huge prospect of returns, you have also discovered a hard money lender in East Grand Rapids who is ready to finance your rehab project. Enter your info into the contact form or get in touch with us via phone to talk about your project.
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