Hard Money Loans in Englewood
There's this amazing possibility for renovating and flipping this wonderful old house in a good area and it seems like the one you have been looking forward to for quite a while. You've heard that veteran house flippers, much like the married couple on HGTV's Flip or Flop, have an impressive average return near $40,000 – $50,000. Of course, you also are aware that their success can be attributed to the fact that they are industry experts, are well versed in hard money loans, they know the marketplace really well and in addition, they are good at working an auction to buy their homes at a reasonable price. That said, you've also been cultivating your rehab and renovation skills, have a very good building contractor lined up and are confident that you will be able to do an impressive job on this property.
But how do you find the necessary financing for home flipping? When you meet with a standard lending institution, like a bank for a loan, it in all likelihood will take a minimum of thirty to sixty days for the acceptance to be completed and the funds to be given out. Given that home owners would prefer a fast closing, you might want to begin searching for other financing alternatives.
With banks introducing tougher loan standards in recent years, it's become much harder for a self-employed person to find a mortgage loan, particularly if his credit score is not optimal. So does this mean you have no option, but to give up your ambition of venturing into the fix and flip business? Definitely not, seeing as you always have the Englewood hard money loan alternative.
A hard money home loan in Englewood provides you with what's probably most sought after by real estate investors — a very fast closing time period of as few as 2 weeks. Furthermore, hard money lenders frequently agree to funding up to 70% LTV of the property or home's valuation, as calculated by a credentialed third-party evaluator. With the rates starting out near 10%, hard money real estate loans may look, at first glance, to be more pricey as compared with conventional bank lending products. But if you appreciate that these loans are not long-term mortgage loans, the rate of interest can be misleading. Short-term loans of several months to a handful of years are best understood as cost of capital, much like any other expense in connection with a project. When you have sold the property or home and have made a good profit, you'll be able to reclaim this expense from the home — just like recovering the money spent on the brand-new kitchen appliances that you've put in.
Besides, hard money mortgages are not hard to qualify for, even when you have a bad credit score. Englewood hard money lenders don't authorize a loan strictly on the basis of the customer's credit score — instead they additionally examine the property, its location and value, and the home's ability to pay back the loan on its own. Additional criteria that affect a person's acceptance for a hard money real estate loan can include how much money he can put towards a down payment, his past experience being a real estate investor, and selling price of comparative, recently sold homes nearby.
So in case you have found a wonderful home to flip with a high probability of returns, you've also found yourself a hard money lender in Englewood that's prepared to fund your fix and flip ventures. Submit the form or call us and let's discuss your property.
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