Hard Money Loans in East Lansing
An incredible buy on a fix and flip property in a good neighborhood all of a sudden shows up — seems too good to be true. Everybody knows that skilled professional flippers, such as Tarek and Christina El Moussa who do HGTV's reality home flipping series, Fix or Flop, can earn a typical profit of forty to fifty thousand dollars when they flip properties. Naturally, you also know that their results can be credited to the fact that they are professionals, are proficient in hard money loans, they know the market really well and additionally, they are good at working an auction for getting a reasonable deal. With that being said, you've also been brushing up your rehab and remodeling knowledge, have a very good building contractor lined up and are positive that you will be able to do a stellar job on this house.
But funding is often a separate question altogether. In the event you get in touch with a customary lending institution, such as a bank for financing, it is more than likely going to take, as a minimum, thirty to sixty days for your approval to be completed and your money to be dispersed. Thus if you are hoping for a fast closing, you need to understand that this could cost you a couple weeks, causing you to miss out on the sale.
Furthermore, if you have a sub-optimal credit situation or don't have a conventional income source, it may be tougher for you to obtain bank financing, seeing the stricter loan requirements banks have issued in recent times. So does that mean you are without an option, but to give up your dream of getting into the fix and flip business? Not at all, particularly while East Lansing hard money loans can help you realize many amazing things in the real estate world.
A hard money home loan in East Lansing gives you what is deemed essential to most real estate deals — a quick closing of only a few weeks and at times less. In addition, the LTV value can go up to 70% of the place's valuation, as estimated by a competent appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, seem to be more costly than bank loans. But the term lengths for these loans tend to be rather short, making the interest rate far less important. As it pertains to short-term loans of a few years or even less, you should consider them similar to every other expenditure for the project. Right after you remodel and unload the house, recouping this expense is no different than recovering the expense for stainless steel appliances you installed in the place.
Apart from this, hard money mortgages are not difficult to qualify for, regardless if you have poor credit. Instead of focusing exclusively on the borrower's credit score or net income, East Lansing hard money lenders, who could be a privately owned company or an individual person, authorize a loan after assessing the home value, ease of marketability, where it is located, and the odds of getting back their capital in the event of foreclosure. Adding to this, if the borrower have proven experience in equivalent real estate endeavors, can place down money for a down payment, and the cost of comparative houses in the area works in his favor, he will have a very good chance of being approved to obtain a hard money real estate loan.
So should you run into a really good and worthwhile flipping opportunity, be assured you'll have a hard money lender in East Lansing, in a position to lend you the funds you will need. Enter your info into the form or give us a call to discuss your property or properties.
A loan specialist will be in touch shortly