Hard Money Loans in Girard
A fabulous buy on a fix and flip property located in a good neighborhood shows up out of the blue — sounds so good that it's difficult to believe. Many people know that expert professional flippers, along the lines of Tarek and Christina El Moussa who do HGTV's reality flipping program, Fix or Flop, are able to make a typical profit margin of forty to fifty thousand dollars in their rehab business. Naturally, you also recognize that their great results can be credited to the simple fact that they're professionals, are well versed in hard money loans, they understand the market quite well and additionally, they know how to work a public auction to buy their homes at an appropriate deal. Still, your rehab and renovation knowledge isn't bad either — in any case, you have already located a good licensed contractor to handle this home.
But how can you get the needed financing for home flipping? A traditional lending institution, like for example a bank, takes at the very least 1-2 months to approve the mortgage and release the cash. So if you're looking for a fast closing, it is important to understand that this may set you back by a couple weeks, causing you to miss out on the opportunity.
With banks establishing harder loan criteria in the past several years, it is now more challenging for a self-employed person to get a home loan, particularly if his credit situation is not perfect. So does that mean you have no option, but to abandon your dream of getting into home flipping? Never, due to the fact you could always go the Girard hard money loan route to pay for your flipping project.
If you should opt for a hard money home loan in Girard, you will get what's perhaps most essential to real estate offers across the country — a very fast closing of about two weeks. What's more, the LTV value can range up to 70% of the home value, as evaluated by a competent appraiser. With the loan rates starting out at about 10%, hard money real estate loans may seem, initially, to be higher in price as compared with traditional bank financing. But the time frames of these loans tend to be fairly short, which means the rate is less important. As it pertains to short-term loans of a handful of years or even less, you should think of them similar to any other expenditure for your project. And as soon as you have flipped the house, recuperating this expense is identical to recouping the expense for the kitchen and bath improvements you did.
Aside from that, hard money mortgages are not difficult to qualify for, whether or not you posses below-average credit. The customer's credit score isn't the sole determining factor for Girard hard money lenders — additionally, they analyze the house, what is it valued at, its location, and its capacity to return their investment if everything does not work out as planned. The amount that an individual can put upfront towards the property, how much experience he has in real estate investing, and price range of comparable properties in the same area are additional details that go into ascertaining a borrower's suitability for a hard money real estate loan.
So in case you have stumbled on a really good fixer-upper with a huge chance of returns, you have also found yourself a hard money lender in Girard who's happy to finance your flipping projects. Submit the contact form on this page or call us and let's discuss your property or properties.
A loan specialist will be in touch shortly