Hard Money Loans in Godfrey
You discovered this outstanding possibility for fixing and flipping this wonderful old property or home in a very good area and it seems like the one you've been eagerly waiting on for quite a while. You may have heard that competent house flippers, such as the couple on HGTV's Flip or Flop, turn an impressive average return of around $40,000 – $50,000. Undoubtedly, you also know that their great results are credited to the fact that they're experts, are well versed in hard money loans, they understand the marketplace quite well and in addition, they are good at working an auction for getting a good deal. However, you're certain that your impressive rehab and renovation skills can help you do a superb job for this home — what's more, you already have lined up one of the best contractors in the area to take care of the project.
But where precisely do real estate investors find financing? A conventional lender, for instance a bank, takes at least 1 to 2 months to consent to the loan and provide the funds. So if you will be hoping for a fast closing, you have to be aware that this may set you back by a few weeks, making you miss out on the home.
On top of this, banks have already been tightening up their lending criteria in recent times, making it difficult for a person to get a regular home loan if their credit circumstances are not perfect or he doesn't have a consistent salaried job. So must you stop trying and forego your aspiration to get into fix and flips? By no means, particularly while Godfrey hard money loans can help you achieve great things in the real estate world.
A hard money home loan in Godfrey provides what is deemed essential to most real estate transactions — a fast closing of only a couple of weeks and more often than not even less. And additionally, loan amounts are made up to 70% loan-to-value of the "as is" value, as determined by a licensed appraiser. With interest rates starting at about 10%, hard money real estate loans may look, at first glance, to be higher in price in comparison with traditional bank loans. But usually, the rate of interest isn't as useful a measure for these loans, simply because they will never be long-term financing. Short-term loans of a couple of months to a handful of years are best thought of as cost of capital, the same as every other expenditure associated with a project. Right after you fix up and resell the property, recuperating this expense is the same as recouping the one for home appliances you placed into the property.
Also, it isn't difficult to obtain a hard money mortgage, regardless of whether your credit score is not that impressive. Rather than focusing only on the borrower's credit score or wages, Godfrey hard money lenders, who could be a private company or an individual, authorize a loan as a result of examining the home value, its marketability, its location, and the probability of recovering their money if they have to foreclose the loan. The total amount that a borrower can put upfront for the house, how much experience he has in real estate investments, and price range of comparative homes in the neighborhood are other factors that go into establishing a borrower's eligibility for a hard money real estate loan.
Searching for a hard money lender in Godfrey to fund your flipping business is not hard, assuming that the opportunity that lies ahead of you is promising and offers the right prospect for returns. Enter your info into the contact form or give us a call to talk about your project.
A loan specialist will be in touch shortly