Hard Money Loans in Evansville
An incredible bargain on a fix and flip property located in a nice area of the city suddenly shows up — seems too good to be true. Professional house flippers, such as the young couple on Flip or Flop, HGTV's reality flipping show, are capable of earning a profit of forty to fifty grand on average. It's fair to say their past experiences rehabbing, understanding of hard money loans, expertise in their housing market, and auction talents have played an important part in their successes. That said, you have recently been brushing up your rehab and remodeling knowledge, have a licensed contractor lined up and are confident that you will be able to do a stellar job for this house.
But capital is usually a different problem entirely. When you approach a standard lender, like a bank for financing, it is likely going to take at least four to eight weeks for the approval to come through and your money to be given out. Considering that all the home owners are looking for a fast closing, that does not seem like a wise idea to you whatsoever.
What's more, should you have a less-than-perfect credit situation or don't receive a conventional income, it can be harder to qualify for a bank loan, with the tougher loan guidelines banks have put in place as of late. So does this mean you have no option, but to give up your ambition of venturing into home flipping? Under no circumstances, particularly while Evansville hard money loans enable you to accomplish many amazing things in real estate.
A hard money home loan in Evansville offers what is deemed essential to many real estate transactions — a quick closing of only a few weeks and more often than not even less. What's more, the LTV value can reach up to 70% of the property's valuation, as estimated by a competent appraiser. A number of people consider hard money real estate loans to be more costly than ordinary loans, because the lending rates for these loans often start out at 10%. But if you understand these are not long-term home loans, the interest rate tends to be misleading. When it comes to short-term loans of 1 or 2 years or even less, you should think about them the same as you would for any other expenditure for the project. And when you have finally sold the property, recuperating this expense is comparable to recuperating the expense for all the bathroom updates you did.
Also, it is simple to qualify for a hard money mortgage, regardless of whether your credit score is not that extraordinary. Instead of focusing only on the borrower's credit score or source of income, Evansville hard money lenders, who could be a privately owned company or an individual person, approve a loan after evaluating the home value, its salability, where it is located, and the likelihood of recouping their capital if they have to foreclose the loan. Adding to that, if the individual can demonstrate past experience in similar real estate ventures, can put down cash towards a down payment, and the cost of equivalent houses in the area works to his benefit, he has a very good chance of qualifying for a hard money real estate loan.
So in the event you run into an outstanding and worthwhile flipping opportunity, be assured you will have a hard money lender in Evansville, ready to loan you the capital you may need. Enter your info into the contact form on this page or give us a call to discuss your project.
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