Hard Money Loans in Fremont
A fabulous deal on a fix and flip property located in a good neighborhood shows up out of the blue — seems so good that it is difficult to believe. Expert home flippers, much like the young couple on Flip or Flop, HGTV's reality flipping show, are able to earn a profit of $40-$50k on most projects. And sure, they are helped in a big way as a result of their professional knowledge, auction skills and familiarity with hard money loans. However, you're convinced that your impressive rehab and renovation abilities can help you do an outstanding job on this property — additionally, you already have arranged to have one of the finest contractors in the area to take care of the project.
But how can you obtain the necessary financing for flipping? Should you approach a customary lending institution, much like a bank for a loan, it can take a minimum of 30-60 days for your acceptance to come through and your funds to be given out. Considering that all the sellers want a fast closing, that doesn't appear to be a good option to you in the slightest.
On top of this, banks have already been tightening up their lending criteria as of late, rendering it more difficult for someone to get an ordinary loan if their credit rating is not perfect or he is lacking a consistent salaried occupation. So will a shortage of financing prevent you from following your aspirations? By no means, particularly while Fremont hard money loans can help you achieve many amazing things in the real estate market.
A hard money home loan in Fremont promises what is probably most important to real estate investors — a quick closing time of as little as fourteen days. Also, hard money lenders can do lending up to 70% LTV of the property's valuation, as calculated by a qualified third-party appraiser. With loan rates starting around 10%, hard money real estate loans might seem, initially, to be more pricey compared to conventional bank loans. But usually, the rate of interest is not as pertinent for these loans, given that they are not long-term financing. The price of such short-term loans should be viewed much like any other cost that you would encounter during the project. Once you've turned the property and have made a successful return, you'll be able to recoup this expense from the house — the same as recovering the cost of brand-new appliances for the kitchen that you have put in.
Moreover, even a person with poor credit can easily be eligible for a hard money mortgage. Fremont hard money lenders do not approve a loan solely based on the applicant's credit score — rather they also evaluate the property or home, where it is located and how much it is worth, and the property's capacity to pay back the financing by itself. The amount that an individual can put upfront towards the home, his real estate experience, and price range of comparative homes in the neighborhood are other details that go into determining a borrower's suitability for a hard money real estate loan.
If you happen to have found an excellent real estate opportunity with a huge potential for returns, you've also discovered a hard money lender in Fremont that is happy to provide funding for your flipping ventures. Complete the contact form or call us to talk about your property.
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