Hard Money Loans in Eden
An outstanding buy on a fix and flip property located in a nice area of the city all of a sudden shows up — seems too good to be true. Expert home flippers, similar to the young couple on Flip or Flop, HGTV's reality flipping series, are capable of generating a profit of $40-$50k as an average on multiple occasions. It's fair to say their rehabbing experience, understanding of hard money loans, familiarity with the market, and auction skills have been large factors to their results. Having said that, you've recently been brushing up your rehab and remodeling knowledge, have got a contractor arranged and are confident that you will be able to do a stellar job on this house.
But money is a separate question altogether. If you approach a regular lender, such as a bank for a mortgage loan, it is more than likely going to take, at the very least, 30-60 days for your approval to come through and the money to be distributed. Thus if you are looking for a fast closing, you must be aware that this may cost you a few weeks, causing you to miss out on the opportunity.
On top of this, banks have already been tightening up their lending requirements as of late, rendering it more difficult for a person to obtain an ordinary loan if their credit circumstances are not flawless or he is lacking a regular salaried profession. So should you give up and forego your desire to embark into real estate? Certainly not, because you can always go the Eden hard money loan route to pay for your home flipping project.
A hard money home loan in Eden promises what's perhaps most essential to real estate investors — a very fast closing in as few as 14 days. And additionally, loan amounts are made up to 70% loan-to-value of the "as is" value, as determined by a qualified appraiser. On the surface, hard money real estate loans, with starting lending rates of 10%, could be seen as more costly than bank loans. But the lengths of these loans are rather short, which means the rate is much less significant. The cost of such short-term loans should be looked at much like any other expenditure that you would need to meet for the project. And when you have finally turned the property or home, recovering this expense is identical to recuperating the expense for all the bathroom updates you did.
Besides, hard money mortgages are easy qualifying, regardless if you have bad credit. Eden hard money lenders don't take on a loan strictly based on the customer's credit score — rather they additionally look at the home, where it is located and how much it is worth, and the home's ability to pay back the loan on its own. The amount that a person can put upfront for the property or home, how much practical experience he has in real estate investments, and selling price of equivalent homes in the area are additional details that go into establishing a borrower's eligibility for a hard money real estate loan.
If you happen to have found a wonderful home to flip with a significant prospect of returns, you've also discovered a hard money lender in Eden who's happy to provide funding for your fix and flip venture. Fill out the contact form or call us and let's discuss your property.
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