Hard Money Loans in Gaffney
There's this outstanding opportunity to fix and flip this nice old home in a good part of town and it looks like the deal you've been expecting for quite some time. Expert residential home flippers, such as the young married couple on Flip or Flop, HGTV's reality flipping series, are capable of generating a profit of $40-$50k for the majority of homes. Of course, you also are aware that their results can be credited to the fact that they are industry experts, are well versed in hard money loans, they know the market really well and furthermore, they know how to work a public auction to purchase their properties at a good price. On the other hand, you're assured that your first class rehab and remodeling talents will assist you to do a superb job on the house — in addition, you have already lined up one of the most recommended general contractors in the business to work on this job.
But how do real estate investors find money? A standard lender, say for example a bank, takes a minimum of one to two months to approve the mortgage and provide the capital. So if you're hoping for a fast closing, it's important for you to understand that this may cost you a couple weeks, causing you to lose out on the sale.
On top of this, banks have already been tightening up their lending standards in recent years, making it challenging for people to obtain an ordinary home loan if their credit circumstances are not flawless or he doesn't have a consistent salaried profession. So must you admit defeat and abandon your dream to venture off into the real estate market? Most certainly not, seeing as you also have the Gaffney hard money loan option.
A hard money home loan in Gaffney promises what is probably most essential to real estate investors — a fast closing time of as little as 2 weeks. Also, hard money lenders will often consent to funding up to 70% LTV of the property or home value, as calculated by a qualified third-party evaluator. With the interest rates starting out near 10%, hard money real estate loans may look, at first glance, to be more costly as compared with conventional bank loans. But once you appreciate that these are not long-term mortgage loans, the rate can be misleading. Short-term loans of a couple of months to a few years are best looked at as cost of capital, the same as every other expense in connection with a project. Once you have turned the house and have made a good financial gain, you'll be able to reclaim this expense from the home — just like recovering the cost of brand-new appliances for the kitchen that you have installed.
Aside from that, hard money mortgages are easy qualifying, even when you posses below-average credit. The person's credit score isn't the exclusive determining factor for Gaffney hard money lenders — they also consider the house, how much it is worth, where it is located, and its potential to bring back their investment if things should not work out as intended. Other factors that affect a customer's approval for a hard money real estate loan include what amount of money he can put into a down payment, his prior experience being a real estate investor, and selling price of comparative, fairly recently sold homes nearby.
So if you have stumbled on a really great real estate opportunity with a significant prospect of returns, you've also discovered a hard money lender in Gaffney who's happy to finance your flipping project. Enter your info into the contact form on this page or give us a call to talk about the project you have in mind.
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