Hard Money Loans in Girard
Suppose that you've stumbled upon this really great deal on a fix and flip property you found in an ideal location, and you are either a skilled real estate investor or a first-timer who really wants to try out flipping houses. You've probably heard that professional home flippers, similar to the married couple on HGTV's Flip or Flop, have a remarkable average profit margin near $40,000 – $50,000. Of course, you also know that their successes are credited to the fact that they're industry experts, are knowledgeable in hard money loans, they know market trends quite well and additionally, they know how to work an auction to buy their houses at an appropriate price. On the other hand, you're certain that your superb rehab and remodeling abilities can help you do an outstanding job on the house — what's more, you have already lined up one of the most recommended general contractors in the area to take on this project.
But how do you get the necessary funding for flipping? In the event you approach a regular lending institution, such as a bank for a loan, it is more than likely going to take, at the very least, 4-8 weeks for your approval to be completed and your money to be distributed. Since most sellers would rather have a fast closing, you might need to begin looking for additional funding alternatives.
Moreover, in case you have a less-than-perfect credit rating or do not receive a regular source of income, it is normally more difficult to obtain a bank loan, seeing the more stringent loan guidelines banks have put in place as of late. So do you have to give up and abandon your desire to venture off into fix and flips? By no means, because you could always go the Girard hard money loan route to pay for your home renovating project.
A hard money home loan in Girard promises what's perhaps most essential to real estate investors — a quick closing time of as little as a few weeks. Aside from that, loans can be done for up to 70% loan-to-value of the "as is" house value, as deemed by a professional appraiser. With interest rates starting out near 10%, hard money real estate loans may seem, initially, to be more expensive as compared with traditional bank lending products. But the lengths of these loans are quite shorter, which means the rate is less significant. The price tag on such short-term loans ought to be looked at on par with every other cost that you will have to meet pertaining to the project. And once you've finally sold the property, recuperating this expense is the exact same as recuperating the expense for all the bathroom or other updates you performed.
Also, it's simple to qualify for a hard money mortgage, regardless of whether your credit situation is not that superb. Girard hard money lenders don't approve a loan exclusively on the basis of the person's credit score — rather they also analyze the property, its valuation and location, and the home's capability to pay back the loan independent of the borrower. Adding to that, if the individual can demonstrate prior experience in equivalent real estate ventures, can put down money for the down payment, and the price of comparative homes in the area works in his favor, he has a really good shot of being approved for a hard money real estate loan.
So should you run into a really good and profitable flipping opportunity, be assured you'll have a hard money lender in Girard, prepared to loan you the cash you'll need. Fill out the form on this page or get in touch with us via phone and let's talk about your property or properties.
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