Hard Money Loans in Erlanger
Suppose you've come across this excellent deal for a fix and flip property you found in an ideal location, and you are either a skilled real estate investor or a newbie who wants to try his hand at flipping. You may have heard that veteran house flippers, like the husband and wife on HGTV's Flip or Flop, have an impressive average return near $40,000 – $50,000. And indeed, they are aided in a major way as a result of their professional experience, auction abilities and knowledge of hard money loans. Still, your rehab and renovation knowledge isn't that bad either — aside from that, you've already located the right general contractor to handle this home.
But capital is usually a separate problem entirely. For those who go after a normal loan from the bank, you will need to wait approximately one to two months up until the money is authorized and your funds are accessible. Since the majority of home owners wish to have a fast closing, it may be advisable to begin looking for some other funding options.
As well as this, if you have an unfavorable credit score or do not receive a regular income source, it may be more challenging for you to be eligible for a a bank loan, with the stricter loan requirements banks have issued as of late. So will a lack of funds prevent you from pursuing your aspirations? By no means, because you can always go the Erlanger hard money loan route to pay for your flipping project.
If you apply for a hard money home loan in Erlanger, you have access to what is probably most essential to real estate transactions throughout the country — a quick closing of roughly a couple weeks. Also, hard money lenders will often consent to funding up to 70% LTV of the property or home value, as calculated by a licensed third-party evaluator. On the surface, hard money real estate loans, with starting lending rates of 10%, appear to be costlier than bank lending products. But usually, the interest rate isn't as useful a measure for these loans, simply because they aren't long-term loans. When it comes to short-term loans of one or two years or less, you should look at them the same as you might for every other expenditure for the project. Right after you renovate and unload the house, recouping this expense is no different than recouping the expense for new kitchen appliances you placed into the house.
Aside from that, hard money mortgages are not difficult to qualify for, whether or not you posses a low credit rating. As an alternative for focusing solely on the borrower's credit score or income, Erlanger hard money lenders, who can be a private company or an individual person, say yes to a loan as a result of assessing the home value, its salability, where it is located, and the likelihood of getting back their capital in the event of foreclosure. How much money a borrower can put down beforehand towards the house, his past real estate experience, and selling price of comparative properties in the same vicinity are additional factors that go into determining an individual's qualification for a hard money real estate loan.
So if you have stumbled upon an excellent home to flip with a huge potential for returns, you've also discovered a hard money lender in Erlanger who's ready to finance your rehab venture. Fill out the form on this page or get in touch with us via phone and let's discuss the project you have in mind.
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