Hard Money Loans in Englewood
Imagine you've run across this really great deal on a fix and flip property located in a great location, and you happen to be either a skilled real estate investor or a first-timer who is looking to try his hand at flipping. You've probably heard that professional home flippers, such as the husband and wife on HGTV's Flip or Flop, turn an impressive average profit margin close to $40,000 – $50,000. It's fair to say their past experiences rehabbing, understanding of hard money loans, familiarity with the market, and auction skills have been major factors to their success. With that being said, you've also been developing your rehab and renovation knowledge, have got a licensed contractor ready to go and are positive that you can do a great job for this home.
But funding is often a different problem entirely. If you apply for an ordinary loan from the bank, you will have to wait somewhere around one to two months up until the time the loan is approved and the funding is ready to go. Since the majority of home owners wish to have a fast closing, it may be advisable to start looking for additional funding options.
With banks introducing more challenging loan standards in the recent past, it's become tougher for a self-employed person to get a home loan, especially if his credit score is not perfect. So does that leave you with no option, but to abandon your dream of getting into home flipping? Certainly not, because you can always use the Englewood hard money loan approach to finance your rehab project.
A hard money home loan in Englewood provides you with what's probably most desired by real estate investors — a fast closing time period of as little as 14 days. In addition, the LTV value can go up to 70% of the home's valuation, as determined by a competent appraiser. With lending rates starting out around 10%, hard money real estate loans may look, at first glance, to be higher in price compared to traditional bank lending products. But if you appreciate that these are not long-term mortgage loans, the rate of interest can be misleading. As it pertains to short-term loans of a few years or less, you should think of them the same as you might for every other expense for your project. And as soon as you've flipped the home, recouping this expense is the exact same as recovering the expense for all the kitchen and bath upgrades you did.
Besides, hard money mortgages are not hard to qualify for, even in the event you have got less-than-perfect credit. The customer's credit score is not the lone deciding factor for Englewood hard money lenders — in addition, they evaluate the house, what is it valued at, its location, and its capability to bring back their investment if everything does not go as intended. On top of that, if the applicant have proven experience in similar real estate projects, can put down cash towards a down payment, and the value of comparative homes in the vicinity works to his benefit, he has a very good shot of being approved to obtain a hard money real estate loan.
Locating a hard money lender in Englewood to finance your fix and flip endeavor is not difficult, assuming that the opportunity that lies before you is promising and boasts a good potential for returns. Enter your info into the form or call us to discuss your property or properties.
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