Hard Money Loans in Garrettsville
An outstanding buy on a fix and flip property in a good area of the city shows up out of the blue — seems too good to be true. Professional property flippers, such as the young married couple on Flip or Flop, HGTV's reality flipping series, are capable of generating a gain of $40-$50k for most homes. And without a doubt, they are aided in a big way as a result of their professional experience, auction expertise and understanding of hard money loans. Still, your rehab and remodeling skills aren't that bad either — in any case, you've already located a suitable licensed contractor to tackle this project.
But money is usually a separate problem entirely. A standard lender, for instance a bank, takes at the very least 1-2 months to authorize the loan and hand over the cash. With the home owners looking for a fast closing, that doesn't appear like a wise idea to you whatsoever.
With banks bringing in harder loan criteria in recent years, it's become more difficult for a self-employed individual to obtain a mortgage loan, especially when his credit rating is not optimal. So does this mean you are without an option, but to drop your dream to venture into home flipping? Certainly not, because you can always use the Garrettsville hard money loan approach to pay for your home flipping project.
When you obtain a hard money home loan in Garrettsville, you'll get what is probably most important to real estate transactions throughout the country — a very fast closing of approximately 14 days. Also, hard money lenders can approve lending up to 70% LTV of the property value, as calculated by a qualified third-party appraiser. Some people consider hard money real estate loans to be more expensive than ordinary financing, because the interest rates of such loans typically start out at 10%. But in reality, the rate of interest isn't as relevant for these loans, simply because they aren't long-term financing. Short-term loans of a couple months to a few years are best thought of in terms of cost of capital, similar to every other financial outlay associated with a project. Right after you fix up and resell the house, recuperating this expense is just like recuperating the expense for stainless steel appliances you put in the property.
What's more, it is simple to obtain a hard money mortgage, regardless if your credit score is not that impressive. The customer's credit score isn't the single determining factor for Garrettsville hard money lenders — they also evaluate the piece of real estate, how much it is worth, its location, and its capacity to return their investment if things do not work out as planned. On top of this, if the applicant can demonstrate past experience in comparable real estate projects, can place down money towards a down payment, and the cost of comparable properties in the vicinity works to his benefit, he has got a very good shot of being approved for a hard money real estate loan.
So in case you have stumbled upon a really good home to flip with a huge chance of returns, you have also stumbled upon a hard money lender in Garrettsville who's ready to fund your flipping venture. Fill out the form on this page or get in touch with us via phone and let's discuss your property or properties.
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