Hard Money Loans in Edwardsville
Suppose you've run into this truly good bargain on a fix and flip property located in a terrific neighborhood, and you happen to be either a skilled real estate investor or a newbie who really wants to try his hand at flipping. You may have heard that competent house flippers, similar to the couple on HGTV's Flip or Flop, have a remarkable average return near forty to fifty thousand dollars. And sure, they are aided in a big way by their professional knowledge, auction expertise and understanding of hard money loans. Nonetheless, your rehab and renovation knowledge isn't bad either — in any case, you have already found a suitable general contractor to start this home.
But financing is a different problem entirely. If you meet with a regular lending institution, much like a bank for financing, it likely will take a minimum of thirty to sixty days for your acceptance to come through and your funds to be accessible. So if you happen to be wishing for a fast closing, you must realize that this will set you back by a couple of weeks, making you miss out on the house.
On top of this, banks have already been tightening up their lending criteria as of late, making it difficult for someone to obtain an ordinary loan if their credit rating is not perfect or he does not possess a regular salaried job. So does this mean you are without an option, but to give up your aspiration to venture into flipping? By no means, especially when Edwardsville hard money loans enable you to achieve many amazing things in the real estate market.
A hard money home loan in Edwardsville gives you what is possibly most sought after by real estate investors — a quick closing in as little as 14 days. Further, loan amounts can be done for up to 70% loan-to-value of the as-is house's valuation, as established by a licensed appraiser. With loan rates starting out near 10%, hard money real estate loans may look, at first, to be more pricey as compared with traditional bank loans. But when you consider these loans are not long-term mortgage loans, the rate can be misleading. Short-term loans of several months to a handful of years are best approached in terms of cost of capital, much like all other costs associated with a project. And when you have sold the house, recouping this expense is the exact same as recouping the expense for all the kitchen and bath improvements you did.
Also, it's easy to qualify for a hard money mortgage, regardless if your credit situation is not that extraordinary. The applicant's credit score is not the lone determining factor for Edwardsville hard money lenders — they also examine the home, its market value, where it is located, and its capability to bring back their investment if things should not go as intended. Other criteria that influence a borrower's eligibility for a hard money real estate loan include how much money he can put into a down payment, his former experience being a real estate investor, and selling price of comparative, fairly recently sold residences in the area.
So in the event you come across a good and worthwhile flipping opportunity, be assured you will have a hard money lender in Edwardsville, ready to loan you the money you need. Fill out the form on this page or give us a call and let's talk about your property.
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