Hard Money Loans in Fowlerville
A fantastic bargain on a fix and flip property located in a nice subdivision all of a sudden shows up — seems too good to be true. Expert residential home flippers, such as the young married couple on Flip or Flop, HGTV's reality flipping show, are capable of earning a profit of $40-$50k on a regular basis. No need to explain that their past experiences rehabbing, understanding of hard money loans, familiarity with the housing market, and auction skills have played a significant role in their successes. Having said that, you've also been developing your rehab and renovation skills, have a licensed contractor ready to go and are certain that you're capable of doing an impressive job for this property.
But how do you get the necessary funding for flipping? For those who apply for a conventional bank loan, you will have to wait around somewhere around 4-8 weeks up until the financing is approved and the funding is ready. Given that sellers would prefer a fast closing, you might have to start searching for other financing alternatives.
To add to it, banks have already been tightening their lending requirements in recent times, rendering it more tough for someone to get an ordinary loan if their credit rating is not perfect or he does not possess a regular salaried profession. So does this leave you with no option, but to give up your ambition of getting into the fix and flip business? By no means, particularly when Fowlerville hard money loans enable you to achieve great things in the real estate market.
A hard money home loan in Fowlerville promises what's perhaps most crucial to real estate investors — a very fast closing in as few as a few weeks. Additionally, financing is made up to 70% loan-to-value of the as-is property value, as established by a licensed appraiser. On the surface, hard money real estate loans, with starting lending rates of 10%, appear to be more expensive than bank financing. But the lengths of these loans are quite shorter, which makes the rate far less important. The price of such short-term loans should be evaluated much like any other expense that you would encounter during the project. And once you've finally flipped the property or home, recouping this expense is identical to recuperating the expense for the bathroom or other updates you performed.
Furthermore, even someone with weak credit can easily be eligible for a hard money mortgage. Instead of focusing entirely on the borrower's credit score or net income, Fowlerville hard money lenders, who can be a private company or an individual, say yes to a loan after evaluating the home value, how easy it will be to market, where it is located, and the possibility of recouping their money if they have to foreclose the loan. Several other criteria that influence a borrower's acceptance for a hard money real estate loan include what amount of money he is able to put into a down payment, his prior experience being a real estate investor, and selling price of similar, recently sold properties in the area.
Locating a hard money lender in Fowlerville to help with expenses for your fix and flip endeavor is not hard, as long as the opportunity that lies ahead of you is promising and offers a strong prospect for returns. Submit the form or get in touch with us via phone to talk about your project.
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