Hard Money Loans in Germantown Hills
Imagine you've run into this excellent bargain on a fix and flip property located in a terrific location, and you happen to be either a skilled real estate investor or a newbie who really wants to try his hand at flipping. Most folks know that knowledgeable 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 of $40,000 to $50,000 in their rehab business. Naturally, you also understand that their successes can be credited to the fact that they're industry experts, are well versed in hard money loans, they know market trends quite well and furthermore, they are good at working a public auction for getting a reasonable deal. Still, your rehab and remodeling knowledge isn't that bad either — besides, you've already identified a suitable general contractor to handle the project.
But where can you obtain the needed financing for home flipping? A conventional lender, like for example a bank, takes at least 1-2 months to approve the financing and provide the monies. So if you will be wishing for a fast closing, it is important you be aware that this could cost you weeks, causing you to lose out on the opportunity.
With banks introducing more challenging loan requirements in the last few years, it has become more difficult for a self-employed person to obtain a home loan, especially if his credit circumstances are not optimal. So must you stop trying and forego your aspiration to venture into fix and flips? Definitely not, given that you also have the Germantown Hills hard money loan alternative.
If you decide to obtain a hard money home loan in Germantown Hills, you will get what is possibly most essential to real estate transactions throughout the country — a fast closing of about 14 days. Further, loans can be made up to 70% loan-to-value of the "as is" property's valuation, as established by a professional appraiser. At first glance, hard money real estate loans, with starting interest rates of 10%, seem to be costlier than bank lending products. But the time frames of these loans tend to be relatively short, which makes the interest rate far less significant. As it pertains 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 your project. After you rehab and sell the home, recuperating this expense is no different than recuperating the money you spent for home appliances you installed in the house.
Furthermore, even individuals with poor credit can easily qualify for a hard money mortgage. Germantown Hills hard money lenders don't authorize a loan strictly based on the person's credit score — instead they additionally examine the property, where it is located and how much it is worth, and the home's capability to pay back the financing without the assistance of the applicant. Other variables that influence an individual's approval for a hard money real estate loan can include how much money he is able to put into a down payment, his prior experience being a real estate investor, and selling price of comparable, just recently sold homes in the area.
Searching for a hard money lender in Germantown Hills to finance your flipping business is not difficult, so long as the opportunity in front of you is promising and has a strong potential for returns. Complete the contact form on this page or give us a call to talk about your property or properties.
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