Hard Money Loans in Fairmont
A remarkable bargain on a fix and flip property in a nice neighborhood suddenly turns up — seems too good to be true. You may have heard that veteran property flippers, similar to the couple on HGTV's Flip or Flop, have an impressive average return of around forty to fifty thousand dollars. Of course, you also understand that their successes are credited to the simple fact that they are professionals, are well versed in hard money loans, they understand the market really well and in addition, they are good at working a public auction for getting a good deal. That said, you've recently been cultivating your rehab and renovation skills, have a very good licensed contractor ready to go and are confident that you're capable of doing an impressive job for this home.
But how do you obtain the necessary capital for home flipping? For those who opt for a conventional loan from the bank, you will wind up waiting approximately 1-2 months until eventually the financing is approved and your funds are accessible. Since most home owners favor a fast closing, you might have to start seeking out other financing options.
With banks introducing more challenging loan criteria in recent times, it is tougher for a self-employed individual to find a home loan, especially if his credit rating is not optimal. So will a shortage of funds keep you from pursuing your dream? Not at all, particularly when Fairmont hard money loans enable you to accomplish great things in the real estate world.
A hard money home loan in Fairmont provides you with what's possibly most desired by real estate investors — a very fast closing time of as few as 2 weeks. Furthermore, hard money lenders will often consent to lending up to 70% LTV of the home value, as assessed by a credentialed third-party evaluation. At first, hard money real estate loans, with starting lending rates of 10%, seem to be more pricey than bank lending products. But usually, the rate of interest isn't as relevant for these loans, because they aren't long-term loans. The price tag on such short-term loans ought to be considered much like any other cost that you might encounter in the course of the project. And when you have sold the home, recouping this expense is the exact same as recovering the expense for the bathroom or other improvements you did.
Furthermore, even a person with low credit can still be eligible for a hard money mortgage. Instead of focusing primarily on the applicant's credit score or wages, Fairmont hard money lenders, who can be a privately owned company or an individual person, approve a loan as a result of evaluating the home value, ease of marketability, its location, and the probability of getting back their money if they have to foreclose the loan. How much an applicant can put down beforehand for the property or home, how much practical experience he has in real estate investing, and price range of comparable homes in the vicinity are various other factors that go into analyzing an applicant's qualification for a hard money real estate loan.
So should you come across an outstanding and lucrative investment opportunity, be assured you'll have a hard money lender in Fairmont, prepared to lend you the cash you'll need. Enter your info into the contact form or get in touch with us via phone to talk about your property or properties.
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