Hard Money Loans in Freeland
An outstanding deal on a fix and flip property located in a good area of the city all of a sudden shows up — sounds so good that it's difficult to believe. Professional residential home flippers, much like the young married couple on Flip or Flop, HGTV's reality flipping program, are capable of generating a gain of forty to fifty grand for most homes. It goes without saying their rehabbing experience, understanding of hard money loans, familiarity with the market, and auction skills have been major factors to their successes. Still, your rehab and remodeling skills aren't that bad either — aside from that, you've already found a good licensed contractor to take on the home.
But how can real estate investors obtain money? For those who approach a standard lender, like a bank for a mortgage loan, it can take, at a minimum, thirty to sixty days for the approval to come through and your money to be sent out. Thus if you are looking for a fast closing, you need to recognize that this could set you back by weeks, causing you to lose out on the opportunity.
Moreover, if you have a less-than-perfect credit rating or do not have a routine source of income, it is normally tougher to qualify for bank financing, considering the tougher loan guidelines banks have put in place lately. So should you give up and abandon your aspiration to venture into fix and flips? Most certainly not, because you also have the Freeland hard money loan option.
A hard money home loan in Freeland provides you with what's perhaps most essential to real estate investors — a very fast closing time of as few as fourteen days. Additionally, loans can be made up to 70% loan-to-value of the "as is" property's valuation, as established by a professional appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, could be seen as more pricey than bank lending products. But the lengths of these loans are rather short, making the rate far less important. As it pertains to short-term loans of a few years or even less, you should look at them identical to any other expenditure for your project. And once you've turned the property, recouping this expense is identical to recouping the expense for the kitchen and bath updates you performed.
Besides, hard money mortgages are not difficult to qualify for, even if you have a low credit rating. Freeland hard money lenders do not approve a loan solely according to the person's credit score — instead they additionally look at the property, its location and value, and the home's capability to pay back the financing independent of the applicant. Other criteria that impact an applicant's acceptance for a hard money real estate loan can include what amount of money he can put towards a down payment, his prior experience being a real estate investor, and selling price of comparative, fairly recently sold homes in the area.
If you happen to have stumbled on a wonderful fixer-upper with a huge prospect of returns, you have also found yourself a hard money lender in Freeland that is prepared to provide financing for your flipping projects. Submit the form on this page or call us to discuss your project.
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