Hard Money Loans in Fairbanks
A fabulous bargain on a fix and flip opportunity in a nice area of the city suddenly shows up — seems so good that it's difficult to believe. You've probably heard that professional home flippers, similar to the couple on HGTV's Flip or Flop, have an impressive average profit margin of around $40,000 – $50,000. It goes without saying their rehabbing experience, knowledge of hard money loans, expertise in their market, and auction skills have played a significant part in their successes. Still, your rehab and renovation skills aren't that bad either — in any case, you've already found an ideal building contractor to take on this home.
But where do real estate investors get funding? In the event you meet with a customary lender, much like a bank for a mortgage loan, it can take, at a minimum, 30-60 days for the acceptance to come through and the funds to be furnished. With the home owners wanting a fast closing, that does not appear to be a wise idea to you at all.
To add to it, banks have already been tightening up their lending requirements in recent years, rendering it more hard for someone to receive a regular loan if their credit score is not flawless or he does not have a regular salaried job. So should you give up and abandon your aspiration to embark into real estate? By no means, particularly while Fairbanks hard money loans can help you realize many amazing things in the real estate world.
If you should opt for a hard money home loan in Fairbanks, you're going to get what is probably most important to real estate transactions across the country — a very fast closing of approximately fourteen days. Additionally, loans can be made up to 70% loan-to-value of the as-is value, as established by a licensed appraiser. With the rates starting around 10%, hard money real estate loans may appear, at first, to be more expensive as compared with traditional bank loans. But the term lengths for these loans tend to be relatively shorter, which means the interest rate is much less significant. Short-term loans of several months to a handful of years are best understood in terms of cost of capital, similar to all other expenditures associated with a project. Once you have resold the property or home and have made a positive financial gain, you can recover this expense from the home — just like recouping the money necessary for the brand-new home appliances that you have installed.
Also, it isn't difficult to be eligible for a hard money mortgage, even if your credit situation is not that superb. Fairbanks hard money lenders don't authorize a loan exclusively judging by the applicant's credit score — instead they additionally look at the property, its location and value, and the property's capability to pay back the loan independent of the borrower. Several other variables that affect a person's approval for a hard money real estate loan can include the amount he can put towards a down payment, his past experience being a real estate investor, and price range of similar, recently sold homes in the area.
So any time you run into a good and profitable investment opportunity, relax knowing you'll have a hard money lender in Fairbanks, willing to loan you the funds you need. Fill out the contact form on this page or call us to talk about the project you have in mind.
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