Hard Money Loans in East Greenville
A fantastic bargain on a fix and flip property located in an excellent area of the city shows up out of the blue — sounds so good that it's hard to believe. You may have heard that professional house flippers, similar to the husband and wife on HGTV's Flip or Flop, enjoy an impressive average profit margin close to $40,000 – $50,000. And indeed, they are aided in a major way due to their professional knowledge, auction expertise and knowledge of hard money loans. Still, your rehab and remodeling skills aren't bad either — aside from that, you have already found the right building contractor to take on this job.
But where do you find the needed funding for home flipping? When you meet with a regular lender, such as a bank for funding, it can take, at a minimum, 4-8 weeks for your approval to be completed and your money to be sent out. So if you will be looking for a fast closing, it's important to recognize that this may cost you a couple of weeks, making you miss out on the sale.
With banks introducing more challenging loan criteria in recent years, it is harder for a self-employed person to find a home loan, especially when his credit circumstances are not optimal. So should you admit defeat and abandon your desire to venture off into real estate? By no means, particularly while East Greenville hard money loans can help you accomplish great things in the real estate market.
A hard money home loan in East Greenville boasts what is possibly most desired by real estate investors — a very fast closing in as little as two weeks. Besides that, hard money lenders are able to do lending up to 70% LTV of the home's valuation, as calculated by a qualified third-party appraiser. A number of people consider hard money real estate loans to be higher in price than regular financing, considering interest rates for these loans commonly start off at 10%. But the term lengths for these loans tend to be rather short, which makes the interest rate less significant. Short-term loans of several months to a few years are best thought of in terms of cost of capital, the same as all other expenditures associated with a project. Once you've resold the property and have made a successful financial gain, you can recover this expense from the house — similar to recouping the money necessary for the brand-new home appliances that you've installed.
Also, it's easy to be eligible for a hard money mortgage, regardless of whether your credit situation is not that impressive. East Greenville hard money lenders don't authorize a loan strictly based on the person's credit score — rather they will evaluate the home, its location and value, and the home's capacity to pay back the loan without the help of the applicant. Several other variables that have an impact on a customer's eligibility for a hard money real estate loan can include what amount of money he is able to put towards a down payment, his former experience as a real estate investor, and price of comparative, fairly recently sold homes in the neighborhood.
Finding a hard money lender in East Greenville to finance your flipping business is not hard, as long as the opportunity that lies ahead of you is promising and has the right potential for returns. Enter your info into the contact form or call us to discuss the project you have in mind.
A loan specialist will be in touch shortly