Hard Money Loans in Eaton
You discovered this phenomenal opportunity to rehab and flip this nice old house in a fantastic part of town and it looks like the deal you've been expecting for quite a while. Everyone knows that capable professional flippers, like Tarek and Christina El Moussa from HGTV's reality flipping series, Fix or Flop, can readily turn an average profit of $40,000 to $50,000 in their rehab business. And yes, they are helped in a big way due to their professional experience, auction abilities and understanding of hard money loans. Nonetheless, your rehab and remodeling knowledge isn't bad either — in any case, you've already located the right contractor to handle this project.
But where do you obtain the needed capital for home flipping? A traditional lender, like for example a bank, takes at a minimum one to two months to authorize the mortgage and hand over the cash. Because most home owners would prefer a fast closing, it may be best to start seeking out additional funding options.
With banks introducing harder loan standards in the last few years, it has become harder for a self-employed individual to obtain a home loan, especially when his credit score is not flawless. So should you give up and forego your aspiration to embark into fix and flips? Under no circumstances, especially when Eaton hard money loans will assist you to accomplish great things in real estate.
A hard money home loan in Eaton offers you what is considered crucial to many real estate sales — a quick closing of only a few weeks and oftentimes less. Additionally, loan amounts can be done for up to 70% loan-to-value of the as-is value, as calculated by a professional appraiser. Some individuals believe hard money real estate loans to be higher in price than regular loans, because the interest rates of such loans often start at 10%. But in reality, the lending rate is not as relevant for these loans, since they will never be long-term loans. As it pertains to short-term loans of a handful of years or less, you should look at them identical to every other expense for the project. Once you've resold the property or home and have made a good financial gain, you can get back this expense from the house — just like recuperating the cost of brand-new home appliances that you have installed.
Moreover, even a person with low credit will be able to qualify for a hard money mortgage. Rather than focusing primarily on the applicant's credit score or income, Eaton hard money lenders, who may be a privately owned company or an individual, approve a loan as a result of assessing the property value, how easy it will be to market, where it is located, and the probability of recuperating their capital in case they have to foreclose the loan. The amount that an individual can put down in advance for the home, how much experience he has in real estate investing, and price range of equivalent homes in the neighborhood are additional factors that go into establishing a person's eligibility for a hard money real estate loan.
So if you have stumbled upon a really good fixer-upper with a significant prospect of returns, you have also found yourself a hard money lender in Eaton that's prepared to provide financing for your flipping venture. Complete the contact form on this page or give us a call to discuss the project you have in mind.
A loan specialist will be in touch shortly