Hard Money Loans in Geneva
You discovered this phenomenal opportunity to fix and flip this nice outdated house in a good location and it seems like the one you have been looking forward to for quite some time. Expert residential home flippers, much like the young couple on Flip or Flop, HGTV's reality flipping program, are capable of earning a gain of forty to fifty grand on average. Naturally, you also understand that their success are attributed to the fact that they are experts, are proficient in hard money loans, they know the market quite well and additionally, they know how to work a public auction to purchase their properties at a reasonable price. Nonetheless, your rehab and renovation skills aren't that bad either — in any case, you've already found an ideal licensed contractor to take on this home.
But how do you find the needed capital for home flipping? Should you approach a regular lender, much like a bank for funding, it is likely going to take, as a minimum, 30-60 days for your approval to be completed and the funds to be given out. With the home owners wanting a fast closing, that does not seem like a great idea to you whatsoever.
To add to it, banks have been tightening their lending criteria in recent years, rendering it more difficult for someone to receive a traditional loan if their credit situation is not flawless or he doesn't have a regular salaried job. So does this leave you with no other option, but to abandon your aspiration of getting into the fix and flip business? Certainly not, on the grounds that you can always use the Geneva hard money loan approach to fund your home renovating project.
A hard money home loan in Geneva provides what is probably most sought after by real estate investors — a very fast closing time period of as few as a few weeks. Further, financing can be done for up to 70% loan-to-value of the as-is property value, as determined by a qualified appraiser. With the lending rates starting around 10%, hard money real estate loans may look, at first, to be higher priced as compared with conventional bank loans. But the term lengths for these loans are rather short, making the rate less important. When it comes to short-term loans of a handful of years or even less, you should look at them the same as you would for any other expenditure for the project. After you renovate and sell off the house, recovering this expense is no different than recouping the expense for home appliances you put in the place.
In addition, even someone with weak credit will be able to qualify for a hard money mortgage. Instead of focusing solely on the person's credit score or source of income, Geneva hard money lenders, who could be a private company or an individual person, approve a loan after analyzing the property value, ease of marketability, its location, and the possibility of getting back their money in the event of foreclosure. Other criteria that influence a person's eligibility for a hard money real estate loan include how much he is able to put into a down payment, his former experience being a real estate investor, and price of comparable, just recently sold residences in the area.
Locating a hard money lender in Geneva to cover expenses for your fix and flip endeavor is not very challenging, provided that the opportunity before you is promising and has the right prospect for returns. Complete the contact form or call us to talk about your property.
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