Hard Money Loans in Edgerton
You discovered this outstanding possibility for fixing and flipping this wonderful out of date condo in a good part of town and it looks a lot like the deal you've been anticipating for quite a while. Most folks know that expert professional flippers, like Tarek and Christina El Moussa who star in HGTV's reality flipping program, Fix or Flop, are able to turn a typical profit margin of forty to fifty thousand dollars when they flip properties. And sure, they are helped in a big way by their professional experience, auction abilities and familiarity with hard money loans. Nonetheless, your rehab and remodeling knowledge isn't that bad either — in any case, you have already located a good contractor to tackle the job.
But money can be a separate problem altogether. A conventional lending institution, say for example a bank, takes at a minimum 1 to 2 months to consent to the mortgage and provide the capital. Since most sellers would prefer a fast closing, you might want to begin looking for some other funding alternatives.
On top of this, banks have been tightening up their lending requirements as of late, making it hard for someone to get a conventional loan if their credit circumstances are not perfect or he doesn't have a consistent salaried job. So does that leave you with no other option, but to drop your aspiration of venturing into flipping? Definitely not, given that you also have the Edgerton hard money loan option.
A hard money home loan in Edgerton provides what is probably most important to real estate investors — a very fast closing time period of as little as 2 weeks. In addition, the LTV value can go up to 70% of the home value, as determined by a credentialed appraiser. At first glance, hard money real estate loans, with starting interest rates of 10%, seem to be more costly than bank loans. But in reality, the rate of interest is not as useful a measure for these loans, since they aren't long-term financing. Short-term loans of a couple of months to a handful of years are best thought of in terms of cost of capital, very much like all other expenses related to a project. Once you've resold the home and have made a positive return, you'll be able to get back this expense from the property — the same as recouping the cost of brand-new kitchen appliances that you have put in.
Besides, hard money mortgages are not difficult to qualify for, even if you have got very bad credit. Edgerton hard money lenders don't take on a loan solely judging by the customer's credit score — rather they also look at the property or home, its valuation and location, and the property's capability to pay back the loan independent of the person. On top of that, if the individual have proven experience in comparable real estate projects, can place down cash for a down payment, and the price of similar homes in the vicinity works in his favor, he stands a really good shot of being approved to get a hard money real estate loan.
So in case you have found a really great fixer-upper with a significant prospect of returns, you've also found yourself a hard money lender in Edgerton that is happy to provide funding for your fix and flip projects. Enter your info into the contact form or call us to talk about your project.
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