Hard Money Loans in Germantown
You discovered this phenomenal possibility for rehabbing and flipping this nice old house in a fantastic area and it looks like the one you've been eagerly waiting on for quite a while. You've probably heard that competent home flippers, like the husband and wife on HGTV's Flip or Flop, enjoy a remarkable average return close to $40,000 – $50,000. And sure, they are aided in a major way as a result of their professional know-how, auction skills and familiarity with hard money loans. However, you are assured that your first class rehab and remodeling knowledge will enable you to do a quality job on the project — furthermore, you already have lined up one of the most recommended building contractors in the business to take on this project.
But money is usually a separate problem entirely. A conventional lending institution, for instance a bank, takes a minimum of one to two months to approve the mortgage and hand over the money. So if you will be expecting a fast closing, you need to understand or know that this could cost you a couple of weeks, making you lose out on the opportunity.
With banks introducing more challenging loan criteria in recent times, it is more difficult for a self-employed person to obtain a mortgage loan, especially when his credit rating is not optimal. So does that mean you have no option, but to drop your ambition of getting into the fix and flip business? By no means, especially while Germantown hard money loans enable you to realize great things in the real estate world.
When you apply for a hard money home loan in Germantown, you will get what's perhaps most essential to real estate negotiations throughout the country — a very fast closing of approximately fourteen days. Additionally, loans can be made up to 70% loan-to-value of the as-is value, as determined by a qualified appraiser. With lending rates starting at about 10%, hard money real estate loans might seem, at first, to be higher in price when compared with traditional bank loans. But once you appreciate that these loans are not long-term mortgage loans, the rate of interest tends to be misleading. Short-term loans of a couple of months to a few years are best understood as cost of capital, the same as all other expenses involved with a project. And as soon as you've finally sold the house, recuperating this expense is identical to recuperating the expense for the kitchen and bath improvements you performed.
Also, it is simple to be eligible for a hard money mortgage, regardless of whether your credit situation is not that superb. Germantown hard money lenders don't take on a loan exclusively on the basis of the applicant's credit score — instead they additionally assess the property or home, where it is located and how much it is worth, and the property's capacity to pay back the financing on its own. Several other factors that affect a person's eligibility 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 price of similar, recently sold residences in the area.
So any time you come across a very good and lucrative flipping opportunity, rest assured you'll have a hard money lender in Germantown, willing to loan you the money you may need. Complete the form or call us and let's talk about your property.
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