Hard Money Loans in Fremont
Suppose you've encountered this excellent deal for a fix and flip property located in a terrific neighborhood, and you happen to be either a skilled real estate investor or a newbie who hopes to try out flipping houses. You may have heard that competent property flippers, such as the husband and wife on HGTV's Flip or Flop, have a remarkable average profit margin near $40,000 – $50,000. Without question, their past experiences rehabbing, understanding of hard money loans, expertise in their market, and auction skills have played a significant part in their results. With that being said, you have also been cultivating your rehab and renovation skills, have a very good general contractor arranged and are certain that you can do an impressive job on this house.
But how can real estate investors get funds? If you apply for a regular loan from the bank, you will wind up waiting around approximately 30-60 days until eventually the money is authorized and your funds are accessible. Since the majority of sellers favor a fast closing, it may be advisable to begin searching for some other financing alternatives.
To add to it, banks have been tightening their lending requirements as of late, which makes it challenging for people to receive a conventional home loan if their credit rating is not perfect or he doesn't have a consistent salaried profession. So must you admit defeat and forego your aspiration to get into fix and flips? Certainly not, on the grounds that you can always use the Fremont hard money loan approach to finance your home flipping project.
If you decide to get a hard money home loan in Fremont, you're going to get what's possibly most vital to real estate offers throughout the country — a very fast closing of approximately a couple weeks. What's more, the LTV value can go up to 70% of the property's valuation, as determined by a certified appraiser. Some individuals believe hard money real estate loans to be more pricey than ordinary loans, considering lending rates for such loans generally start out at 10%. But in reality, the lending rate isn't as pertinent for these loans, since they are not long-term financing. The cost of such short-term loans should be looked at on par with every other cost that you might encounter in the course of the project. After you remodel and sell off the house, recovering this expense is the same as recouping the one for stainless steel appliances you put in the home.
What's more, it is easy to qualify for a hard money mortgage, even if your credit rating is not that impressive. Fremont hard money lenders don't take on a loan exclusively judging by the applicant's credit score — instead they will look at the property, where it is located and what it is worth, and the home's ability to pay back the loan on its own. On top of that, if the applicant can demonstrate prior experience in comparable real estate projects, can put down cash towards a down payment, and the price of comparable homes in the area works in his favor, he stands a very good likelihood of qualifying to obtain a hard money real estate loan.
So if you have stumbled upon an excellent real estate opportunity with a huge chance of returns, you've also discovered a hard money lender in Fremont that's prepared to finance your rehab project. Complete the form on this page or get in touch with us via phone to talk about the property or properties you have in mind.
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