Hard Money Loans in Garfield
Imagine you've come across this really great bargain for a fix and flip property located in a great neighborhood, and you're either a skilled real estate investor or a first-timer who wants to try out flipping homes. Everyone knows that expert professional flippers, along the lines of Tarek and Christina El Moussa who star in HGTV's reality flipping series, Fix or Flop, can turn an average profit margin of forty to fifty thousand dollars on their flips. And indeed, they are aided in a big way due to their professional knowledge, auction skills and understanding of hard money loans. Nonetheless, your rehab and renovation skills aren't bad either — besides, you have already found a suitable building contractor to tackle this job.
But financing is a different problem entirely. If you get in touch with a customary lender, like a bank for funding, it can take, as a minimum, 4-8 weeks for your acceptance to be completed and your money to be accessible. With the home owners looking for a fast closing, that does not appear to be a good option to you at all.
On top of this, banks have already been tightening up their lending criteria in recent years, which makes it challenging for someone to obtain a regular loan if their credit situation is not flawless or he doesn't have a regular salaried occupation. So will a lack of financing prevent you from pursuing your ambitions? Certainly not, due to the fact you could always use the Garfield hard money loan approach to pay for your home flipping project.
If you opt for a hard money home loan in Garfield, you will get what is probably most important to real estate transactions throughout the country — a very fast closing of about a couple weeks. Plus, the LTV value can reach up to 70% of the home value, as determined by a certified appraiser. With the interest rates starting out near 10%, hard money real estate loans might seem, at first glance, to be more pricey as compared with traditional bank lending products. But when you understand these are not long-term mortgage loans, the interest rate tends to be misleading. The price of such short-term loans ought to be looked at much like every other financial outlay that you will encounter in the course of the project. Once you have resold the home and have made a successful gain, you're able to reclaim this expense from the property or home — much like recovering the money spent on the brand-new home appliances that you installed.
Additionally, it is simple to be eligible for a hard money mortgage, even when your credit score is not that superb. The applicant's credit score isn't the single deciding factor for Garfield hard money lenders — additionally, they look at the piece of real estate, how much it is worth, its location, and its capacity to earn back their financial commitment if everything does not work out as intended. Adding to this, if the borrower have proven experience in equivalent real estate endeavors, can place down cash towards a down payment, and the cost of similar homes in the neighborhood works to his benefit, he has an excellent chance of qualifying for a hard money real estate loan.
If you happen to have found a wonderful real estate opportunity with a significant chance of returns, you have also found yourself a hard money lender in Garfield who's happy to fund your fix and flip venture. Fill out the form on this page or call us to discuss the property you have in mind.
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