Hard Money Loans in Glen Carbon
Suppose that you've run across this excellent bargain for a fix and flip property you found in a terrific location, and you're either a skilled real estate investor or a first-timer who really wants to try his hand at flipping. You may have heard that professional house flippers, like the couple on HGTV's Flip or Flop, enjoy an impressive average profit close to forty to fifty thousand dollars. And sure, they are aided in a major way via their professional know-how, auction skills and understanding of hard money loans. Having said that, you've recently been developing your rehab and remodeling skills, have got a contractor ready for the project and are certain that you can do a great job for this house.
But funding is usually a separate problem entirely. For those who opt for an ordinary bank loan, you will end up waiting somewhere around one to two months until the mortgage loan is approved and the money is readily available. Given that sellers favor a fast closing, it may be best to begin seeking out other financing alternatives.
Moreover, if you have a sub-optimal credit rating or do not receive a conventional income source, it is usually tougher for you to obtain bank financing, with the tighter loan requirements banks have introduced in recent times. So will a lack of financing prevent you from pursuing your ambitions? By no means, especially when Glen Carbon hard money loans can help you accomplish great things in the real estate world.
A hard money home loan in Glen Carbon provides you with what is perhaps most crucial to real estate investors — a very fast closing time of as few as two weeks. What's more, the LTV value can go up to 70% of the home value, as evaluated by a competent appraiser. Some people regard hard money real estate loans to be costlier than standard loans, because the lending rates of such loans ordinarily start off at 10%. But once you understand these are not long-term home loans, the interest rate tends to be misleading. When it comes to short-term loans of a few years or less, you should consider them the same as you might for any other expense for your project. Once you have turned the property and have made a successful return, you're able to reclaim this expense from the house — much like recouping the cost of brand-new kitchen appliances that you put in.
Aside from that, hard money mortgages are easy qualifying, regardless if you have got below-average credit. Glen Carbon hard money lenders do not approve a loan exclusively judging by the person's credit score — rather they will evaluate the home, its valuation and location, and the property's capability to pay back the loan independent of the applicant. How much of their own money an applicant can put down beforehand towards the house, his real estate experience, and price range of comparative properties in the neighborhood are other factors that go into determining an applicant's qualification for a hard money real estate loan.
Searching for a hard money lender in Glen Carbon to cover expenses for your fix and flip endeavor is not hard, provided that the opportunity in front of you is promising and possesses a strong prospect for returns. Submit the contact form or call us to discuss the project you have in mind.
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