Hard Money Loans in Grand Haven
Suppose that you've run into this excellent bargain on a fix and flip property in a terrific location, and you happen to be either an experienced real estate investor or a newbie who really wants to try his hand at flipping. You've heard that veteran property flippers, such as the couple on HGTV's Flip or Flop, have a remarkable average return of around $40,000 – $50,000. Undoubtedly, you also realize that their success are due to the fact that they're industry experts, are knowledgeable in hard money loans, they understand the marketplace really well and in addition, they are good at working an auction for getting a reasonable price. Nonetheless, your rehab and renovation knowledge isn't that bad either — aside from that, you have already identified an ideal licensed contractor to handle this home.
But where can you obtain the needed financing for flipping? A traditional lender, like for example a bank, takes no less than 1 to 2 months to authorize the loan and hand over the money. With the home owners seeking a fast closing, that doesn't appear to be a great idea to you at all.
On top of this, banks have been tightening up their lending requirements as of late, making it hard for someone to obtain a traditional home loan if their credit score is not flawless or he doesn't have a regular salaried occupation. So will a shortage of funding prevent you from following your dream? By no means, particularly when Grand Haven hard money loans can help you achieve many amazing things in real estate.
A hard money home loan in Grand Haven offers what's viewed as essential to most real estate sales — a very fast closing of just a couple of weeks and at many times even less. Aside from that, loan amounts can be made up to 70% loan-to-value of the as-is home value, as established by a qualified appraiser. With the lending rates starting around 10%, hard money real estate loans might seem, at first, to be more expensive compared to traditional bank financing. But usually, the lending rate isn't as relevant for these loans, because they will never be long-term loans. When it comes to short-term loans of a few years or even less, you should look at them much like you would other expenditures for your project. After you rehab and sell off the home, recouping this expense is just like recovering the one for new kitchen appliances you put in the place.
Moreover, even an individual with bad credit will be able to qualify for a hard money mortgage. Instead of focusing only on the applicant's credit score or source of income, Grand Haven hard money lenders, who can be a private company or an individual, authorize a loan after evaluating the property value, ease of marketability, where it is located, and the odds of recuperating their capital in case of foreclosure. On top of this, if the individual have proven experience in similar real estate projects, can place down cash towards a down payment, and the price of comparative homes in the vicinity works in his favor, he stands a very good likelihood of being approved to obtain a hard money real estate loan.
So any time you come across a really good and lucrative investment opportunity, feel comfortable knowing you will have a hard money lender in Grand Haven, able to loan you the money you need. Complete the form or get in touch with us via phone to talk about your property.
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