Hard Money Loans in Flat Rock
A fabulous buy on a fix and flip property in a very good neighborhood all of a sudden shows up — sounds too good to be true. Many people know that expert professional flippers, like Tarek and Christina El Moussa who star in HGTV's reality home flipping show, Fix or Flop, can earn a typical profit of $40,000 to $50,000 on their home projects. Without question, their rehabbing experience, understanding of hard money loans, familiarity with the market, and auction skills have played a big role in their results. Nonetheless, your rehab and remodeling skills aren't bad either — aside from that, you've already identified a good general contractor to tackle this home.
But money is often a separate question altogether. Should you meet with a customary lender, like a bank for a loan, it's more than likely going to take at least thirty to sixty days for the acceptance to come through and your funds to be dispersed. Since the majority of sellers give preference to a fast closing, you might have to begin searching for additional financing options.
To add to it, banks have already been tightening up their lending criteria as of late, rendering it more difficult for a person to obtain a traditional home loan if their credit score is not perfect or he does not possess a regular salaried occupation. So must you give up and forego your ambition to venture into fix and flips? Certainly not, considering that you could always use the Flat Rock hard money loan approach to finance your flipping project.
If you opt for a hard money home loan in Flat Rock, you're going to get what's probably most essential to real estate purchases throughout the country — a very fast closing of about fourteen days. Additionally, loans are made up to 70% loan-to-value of the "as is" house value, as calculated by a licensed appraiser. At first, hard money real estate loans, with starting interest rates of 10%, seem to be more pricey than bank financing. But if you consider these are not long-term mortgage loans, the rate of interest tends to be misleading. The price tag on such short-term loans should be evaluated much like every other expenditure that you would encounter in the course of the project. Once you have turned the home and have made a good return, you're able to reclaim this expense from the property — just like recouping the cost of brand-new home appliances that you installed.
What's more, it isn't difficult to be eligible for a a hard money mortgage, even in the event your credit score is not that superb. Flat Rock hard money lenders do not take on a loan solely judging by the applicant's credit score — instead they also assess the property, its location and value, and the property's ability to pay back the loan independent of the borrower. The total amount that a borrower can put down in advance towards the house, his real estate experience, and price range of comparative properties in the neighborhood are other details that go into determining an applicant's qualification for a hard money real estate loan.
So in the event you come across a really good and worthwhile flipping opportunity, rest assured you'll have a hard money lender in Flat Rock, ready to loan you the funds you'll need. Submit the contact form on this page or give us a call to discuss the property you have in mind.
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