Hard Money Loans in Eau Claire
An incredible buy on a fix and flip property in a very good neighborhood suddenly shows up — sounds so good that it's difficult to believe. You may have heard that competent home flippers, such as the married couple on HGTV's Flip or Flop, enjoy an impressive average return of around forty to fifty thousand dollars. It's fair to say their past experiences rehabbing, knowledge of hard money loans, expertise in their market, and auction skills have played a big part in their success. Nonetheless, your rehab and remodeling knowledge isn't bad either — besides, you have already located a good general contractor to handle the job.
But how do you obtain the needed funding for flipping? A typical lending institution, for instance a bank, takes no less than one to two months to consent to the financing and release the funds. With all the sellers seeking a fast closing, that doesn't seem like a wise idea to you whatsoever.
With banks introducing harder loan guidelines in recent years, it's become more difficult for a self-employed person to get a mortgage loan, especially when his credit situation is not optimal. So does this mean you have no option, but to abandon your dream to venture into home renovating? Certainly not, on the grounds that you could always use the Eau Claire hard money loan approach to finance your flipping project.
A hard money home loan in Eau Claire can provide what's deemed essential to many real estate deals — a quick closing of just a few weeks and sometimes even less. Also, hard money lenders frequently agree to lending up to 70% LTV of the property or home's valuation, as identified by a qualified third-party evaluator. Some individuals believe hard money real estate loans to be more pricey than ordinary financing, because the interest rates for such loans generally start at 10%. But the term lengths for these loans are relatively short, which means the interest rate is much less significant. The price tag on such short-term loans ought to be viewed much like every other cost that you would have to meet pertaining to the project. Once you've sold the house and have made a positive profit, you'll be able to recover this expense from the property — much like recuperating the cost of brand-new appliances for the kitchen that you have put in.
In addition, even an individual with poor credit will be able to be eligible for a hard money mortgage. Eau Claire hard money lenders do not take on a loan exclusively on the basis of the applicant's credit score — rather they will look at the home, its location and value, and the home's ability to pay back the financing on its own. Additional factors that influence a borrower's acceptance for a hard money real estate loan can include how much he is in a position to put towards a down payment, his prior experience being a real estate investor, and price of similar, fairly recently sold homes in the vicinity.
So should you come across a really good and worthwhile flipping opportunity, rest assured you will have a hard money lender in Eau Claire, ready to lend you the capital you will need. Complete the form or get in touch with us via phone to talk about the property you have in mind.
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