Hard Money Loans in Fort Collins
A fabulous buy on a fix and flip opportunity in a nice subdivision shows up out of the blue — seems so good that it's difficult to believe. You've heard that veteran home flippers, similar to the married couple on HGTV's Flip or Flop, have an impressive average profit margin close to $40,000 – $50,000. Without question, their rehabbing experience, understanding of hard money loans, familiarity with the market, and auction talents have been major factors to their results. That said, you've likewise been developing your rehab and renovation skills, have a building contractor arranged and are confident that you're capable of doing an impressive job on this house.
But how can real estate investors find funds? If you opt for a normal bank loan, you will need to wait around somewhere around 4-8 weeks up until the financing is authorized and your money is readily available. Due to the fact the sellers are looking for a fast closing, that doesn't seem like a great idea to you in the slightest.
On top of this, banks have been tightening their lending standards in recent years, making it difficult for someone to obtain an ordinary loan if their credit score is not flawless or he does not possess a regular salaried profession. So does this leave you with no other option, but to drop your dream to venture into home flipping? Absolutely not, because you also have the Fort Collins hard money loan alternative.
A hard money home loan in Fort Collins gives you what is considered crucial to most real estate deals — a very fast closing of just a couple of weeks and more often than not even less. Additionally, financing can be done for up to 70% loan-to-value of the "as is" property value, as established by a qualified appraiser. At first, hard money real estate loans, with starting interest rates of 10%, could be seen as more pricey than bank financing. But in reality, the lending rate is not as relevant for these loans, since they are not long-term financing. The cost of such short-term loans ought to be looked at much like every other expenditure that you would encounter during the project. Right after you fix up and sell the property, recuperating this expense is no different than recouping the cost of the new kitchen appliances you installed in the property.
Aside from that, hard money mortgages are easy qualifying, regardless if you have a bad credit rating. Instead of focusing entirely on the person's credit score or income, Fort Collins hard money lenders, who can be a privately owned company or an individual, authorize a loan after evaluating the home value, how easy it will be to market, its location, and the possibility of getting back their capital in the event of foreclosure. How much of their own money an applicant can put down in advance towards the property, how much experience he has in real estate investing, and selling price of comparative homes in the area are various other factors that go into establishing an applicant's eligibility for a hard money real estate loan.
Locating a hard money lender in Fort Collins to finance your renovation project is not very hard, provided that the opportunity that lies ahead of you is promising and has a strong prospect for returns. Enter your info into the form on this page or call us and let's talk about your project.
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