Hard Money Loans in Gary
A fantastic bargain on a fix and flip opportunity in a very good subdivision all of a sudden shows up — sounds so good that it's difficult to believe. Expert home flippers, similar to the young married couple on Flip or Flop, HGTV's reality flipping show, are able to bring in a gain of forty to fifty grand as an average on multiple occassions. And indeed, they are aided in a big way by their professional know-how, auction abilities and knowledge of hard money loans. Nevertheless, you're convinced that your superb rehab and renovation knowledge will help you do an outstanding job on the property — in addition, you already have arranged to have one of the most suggested general contractors in the business to take on this job.
But capital is often a different question entirely. Should you opt for a conventional bank loan, you will have to wait somewhere around 4-8 weeks until the mortgage loan is approved and your funds are ready to go. So if you will be looking for a fast closing, it is important you realize that this will set you back by a couple of weeks, making you lose out on the home.
With banks adding harder loan guidelines in the last few years, it is now more difficult for a self-employed person to obtain a home loan, especially if his credit rating is not perfect. So does that leave you with no option, but to abandon your aspiration of venturing into the fix and flip business? Absolutely not, seeing as you always have the Gary hard money loan option.
A hard money home loan in Gary provides what is considered vital to most real estate sales — a quick closing of just a couple of weeks and at many times even less. Further, financing can be made up to 70% loan-to-value of the "as is" house value, as calculated by a qualified appraiser. At first, hard money real estate loans, with starting interest rates of 10%, could be seen as higher priced than bank lending options. But when you appreciate that these loans are not long-term home loans, the rate of interest tends to be misleading. As it pertains to short-term loans of one or two years or less, you should think about them similar to every other expenditure for the project. And when you've turned the house, recuperating this expense is identical to recouping the expense for all the bathroom or other upgrades you did.
In addition, even individuals with bad credit can easily qualify for a hard money mortgage. Instead of focusing strictly on the person's credit score or wages, Gary hard money lenders, who could be a privately owned company or an individual person, say yes to a loan after examining the property value, how easy it will be to market, its location, and the probability of getting back their money in case of foreclosure. The total amount that an individual can put down in advance for the property, how much practical experience he has in real estate investing, and price range of equivalent homes in the same area are additional details that go into analyzing an applicant's qualification for a hard money real estate loan.
So should you run into a really good and worthwhile investment opportunity, relax knowing you will have a hard money lender in Gary, prepared to lend you the money you need. Enter your info into 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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