Hard Money Loans in Glenarden
Suppose that you've encountered this excellent deal on a fix and flip property in an ideal neighborhood, and you're either an experienced real estate investor or a newbie who is looking to try his hand at flipping. Professional house flippers, similar to the young couple on Flip or Flop, HGTV's reality flipping series, are capable of hauling in a gain of $40-$50k on most projects. Of course, you also recognize that their results can be attributed to the simple fact that they're professionals, are knowledgeable in hard money loans, they know the market quite well and they also know how to work a public auction to buy their properties at an appropriate price. However, you're convinced that your superb rehab and remodeling abilities will help you do a great job on this home — what's more, you have already lined up one of the most suggested contractors in the area to take on the project.
But how do real estate investors get money? A traditional lending institution, for instance a bank, takes at the very least 1-2 months to consent to the financing and release the cash. Because most home owners prefer a fast closing, you might need to begin searching for other financing options.
With banks introducing more challenging loan standards in the past several years, it is much harder for a self-employed person to find a home loan, especially if his credit circumstances are not flawless. So should you give up and abandon your aspiration to venture off into real estate? Under no circumstances, particularly while Glenarden hard money loans can help you accomplish great things in real estate.
A hard money home loan in Glenarden offers what's deemed crucial to many real estate deals — a quick closing of only a few weeks and at times less. What's more, the LTV value can go up to 70% of the place's valuation, as evaluated by a certified appraiser. A number of people consider hard money real estate loans to be costlier than regular financing, considering lending rates of such loans usually start out at 10%. But if you appreciate that these loans are not long-term loans, the rate of interest can be misleading. When it comes to short-term loans of 1 or 2 years or even less, you should consider them similar to any other expenditure for the project. Right after you remodel and sell off the home, recovering this expense is no different than recovering the money you spent for new kitchen appliances you placed into the home.
Aside from that, hard money mortgages are not hard to qualify for, even if you posses a weak credit score. Rather than focusing only on the borrower's credit score or net income, Glenarden hard money lenders, who could be a privately owned company or an individual, approve a loan as a result of evaluating the home value, its marketability, where it is located, and the possibility of recouping their money in case of foreclosure. How much a person can put down in advance for the house, how much experience he has in real estate investing, and selling price of comparable properties in the same area are additional factors that go into ascertaining a borrower's eligibility for a hard money real estate loan.
If you happen to have stumbled upon a really great home to flip with a significant chance of returns, you've also found yourself a hard money lender in Glenarden that's willing to fund your fix and flip ventures. Fill out the contact form or call us to discuss your property or properties.
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