Hard Money Loans in Fenton
A fabulous buy on a fix and flip opportunity in an excellent subdivision all of a sudden shows up — seems so good that it is difficult to believe. Everyone knows that knowledgeable professional flippers, along the lines of Tarek and Christina El Moussa from HGTV's reality home flipping series, Fix or Flop, are able to turn a typical profit margin of $40,000 to $50,000 in their rehab business. And yes, they are helped in a big way as a result of their professional know-how, auction skills and knowledge of hard money loans. Nonetheless, your rehab and remodeling skills aren't that bad either — in any case, you have already located the right general contractor to start the job.
But how can real estate investors obtain funding? A standard lending institution, say for example a bank, takes at the very least 1 to 2 months to authorize the loan and deliver the cash. Since most home owners give preference to a fast closing, you might need to start searching for some other funding options.
As well as this, if you have a less-than-perfect credit score or do not receive a consistent source of income, it is normally tougher for you to obtain bank financing, seeing the tougher loan criteria banks have put in place in recent times. So will inadequate financing keep you from following your aspirations? By no means, particularly while Fenton hard money loans can help you achieve great things in real estate.
A hard money home loan in Fenton gives you what's viewed as imperative to most real estate transactions — a fast closing of only a few weeks and at times less. Besides that, hard money lenders can do loans up to 70% LTV of the home value, as assessed by a qualified third-party evaluation. On the surface, hard money real estate loans, with starting interest rates of 10%, appear to be more costly than bank loans. But in reality, the lending rate isn't as pertinent for these loans, simply because they will never be long-term financing. Short-term loans of a couple of months to a few years are best approached in terms of cost of capital, very much like all other expenditures involved with a project. And when you have flipped the house, recovering this expense is identical to recuperating the expense for the bathroom or other updates you did.
Aside from that, hard money mortgages are not difficult to qualify for, regardless if you have very bad credit. Fenton hard money lenders don't take on a loan solely on the basis of the borrower's credit score — instead they will analyze the property, where it is located and what it is worth, and the property's capability to pay back the financing independent of the person. Adding to that, if the individual have proven experience in comparable real estate projects, can place down money towards a down payment, and the value of similar homes in the vicinity works to his benefit, he will have an excellent chance of qualifying to obtain a hard money real estate loan.
Searching for a hard money lender in Fenton to fund your real estate project is not very hard, so long as the opportunity in front of you is promising and boasts a strong potential for returns. Submit the form or give us a call to talk about the project you have in mind.
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