Hard Money Loans in Eden Prairie
Suppose that you've stumbled upon this excellent bargain for a fix and flip property in a terrific location, and you are either a seasoned real estate investor or a newbie who is looking to try his hand at flipping. Professional residential home flippers, like the young couple on Flip or Flop, HGTV's reality flipping program, are capable of bringing in a gain of $40-$50k on most projects. And sure, they are aided in a big way by their professional knowledge, auction expertise and understanding of hard money loans. Still, your rehab and renovation knowledge isn't bad either — besides, you have already found a suitable building contractor to take on the home.
But money is usually a separate issue entirely. A traditional lender, like for example a bank, takes at a minimum 1 to 2 months to authorize the financing and provide the funds. Due to the fact the home owners are looking for a fast closing, that does not seem like a good idea to you at all.
On top of this, banks have been tightening their lending standards as of late, making it hard for people to obtain a conventional home loan if their credit situation is not flawless or he is lacking a regular salaried occupation. So does this mean you have no option, but to give up your aspiration of getting into the fix and flip business? Certainly not, because you could always go the Eden Prairie hard money loan route to pay for your home renovating project.
A hard money home loan in Eden Prairie gives you what is deemed vital to many real estate sales — a very fast closing of just a couple of weeks and sometimes less. Further, loan amounts can be done for up to 70% loan-to-value of the as-is home value, as established by a qualified appraiser. With rates starting off at about 10%, hard money real estate loans may appear, initially, to be more expensive when compared with conventional bank financing. But the term lengths for these loans tend to be quite short, making the rate far less significant. Short-term loans of a couple months to a few years are best thought of as cost of capital, the same as all other costs associated with a project. And once you've flipped the home, recovering this expense is comparable to recovering the expense for the bathroom upgrades you did.
Apart from this, hard money mortgages are not hard to qualify for, even when you have poor credit. Eden Prairie hard money lenders don't authorize a loan strictly according to the customer's credit score — instead they additionally analyze the property or home, its location and value, and the home's capacity to pay back the financing on its own. On top of this, if the applicant have proven experience in similar real estate ventures, can put down money for a down payment, and the price of equivalent properties in the vicinity works in his favor, he stands a very good shot of being approved to obtain a hard money real estate loan.
Locating a hard money lender in Eden Prairie to finance your renovation project is not hard, assuming that the opportunity that lies ahead of you is promising and possesses the right potential for returns. Enter your info into the contact form on this page or give us a call to talk about the property you have in mind.
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