Hard Money Loans in Eastlake
A fabulous buy on a fix and flip property in an excellent neighborhood all of a sudden shows up — sounds so good that it is difficult to believe. Everyone knows that expert professional flippers, like Tarek and Christina El Moussa who star in HGTV's reality home flipping show, Fix or Flop, can generate a typical profit margin of $40,000 to $50,000 in their rehab business. And without a doubt, they are aided in a big way due to their professional experience, auction skills and familiarity with hard money loans. Still, your rehab and renovation knowledge isn't that bad either — in any case, you've already located a good building contractor to take on this home.
But where can you get the necessary financing for home flipping? If you meet with a customary lender, like a bank for funding, it can take, at a minimum, four to eight weeks for the acceptance to be completed and your money to be furnished. So if you will be anticipating a fast closing, you have to understand that this will set you back by weeks, causing you to miss out on the sale.
To add to it, banks have been tightening up their lending standards in recent years, which makes it hard for a person to obtain a typical home loan if their credit circumstances are not perfect or he is lacking a consistent salaried occupation. So will a shortage of funds keep you from pursuing your ambitions? Most certainly not, given that you also have the Eastlake hard money loan option.
If you decide to get a hard money home loan in Eastlake, you'll get what's probably most important to real estate offers across the country — a very fast closing of approximately a couple weeks. Additionally, financing is made up to 70% loan-to-value of the "as is" value, as established by a professional appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, seem to be higher in price than bank lending options. But if you appreciate that these loans are not long-term loans, the rate can be misleading. The cost of such short-term loans ought to be looked at on par with any other financial outlay that you might encounter in the course of the project. After you fix up and sell the house, recouping this expense is no different than recouping the one for home appliances you put in the house.
Aside from that, hard money mortgages are easy qualifying, whether or not you have got a weak credit score. Eastlake hard money lenders don't take on a loan solely based on the customer's credit score — instead they also evaluate the property, where it is located and what it is worth, and the property's capacity to pay back the loan independent of the applicant. The amount that an applicant can put upfront towards the home, his past real estate experience, and selling price of comparative homes in the same area are other details that go into determining a borrower's suitability for a hard money real estate loan.
So in case you have stumbled on a really great home to flip with a significant potential for returns, you have also stumbled upon a hard money lender in Eastlake that's prepared to provide financing for your flipping venture. Complete the contact form on this page or give us a call and let's discuss your property.
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