Hard Money Loans in Galva
A remarkable buy on a fix and flip property in a good subdivision shows up out of the blue — sounds too good to be true. You may have heard that competent house flippers, such as the husband and wife on HGTV's Flip or Flop, have a remarkable average profit close to forty to fifty thousand dollars. It goes without saying their past experiences rehabbing, knowledge of hard money loans, familiarity with the housing market, and auction skills have had an important part in their success. Still, your rehab and renovation skills aren't that bad either — in any case, you've already identified an ideal general contractor to handle the project.
But how exactly can real estate investors obtain financing? In the event you approach a regular lending institution, such as a bank for financing, it's likely going to take no less than four to eight weeks for your approval to come through and your money to be sent out. With the home owners looking for a fast closing, that does not appear like a good option to you at all.
On top of this, banks have been tightening up their lending criteria as of late, making it difficult for people to get a typical home loan if their credit situation is not flawless or he does not possess a regular salaried occupation. So does this mean you are without an option, but to drop your aspiration of getting into flipping? Definitely not, seeing as you also have the Galva hard money loan option.
A hard money home loan in Galva can provide what's considered vital to many real estate transactions — a fast closing of just a couple of weeks and sometimes even less. Further, financing can be done for up to 70% loan-to-value of the "as is" house value, as deemed by a qualified appraiser. At first, hard money real estate loans, with starting lending rates of 10%, could be seen as more expensive than bank loans. But in reality, the lending rate is not as relevant for these loans, simply because they aren't long-term financing. When it comes to short-term loans of a few years or less, you should consider them much like you would other expenditures for the project. Once you've sold the house and have made a positive gain, you'll be able to recover this expense from the property — just like recouping the cost of brand-new kitchen appliances that you installed.
In addition, even a person with low credit will be able to qualify for a hard money mortgage. Galva hard money lenders do not approve a loan exclusively according to the customer's credit score — instead they will examine the property or home, its value and location, and the property's capacity to pay back the financing independent of the person. Other criteria that influence a customer's approval for a hard money real estate loan include how much money he is able to put into a down payment, his previous experience being a real estate investor, and price of comparable, just recently sold properties nearby.
So if you have found an excellent fixer-upper with a significant chance of returns, you have also found yourself a hard money lender in Galva that's willing to fund your flipping ventures. Enter your info into the form on this page or give us a call and let's discuss the project you have in mind.
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