Hard Money Loans in Grand Island
An outstanding deal on a fix and flip property located in a nice neighborhood all of a sudden shows up — seems so good that it's difficult to believe. Professional home flippers, much like the young couple on Flip or Flop, HGTV's reality flipping show, are capable of hauling in a profit of $40-$50k for most homes. No need to explain that their rehabbing experience, knowledge of hard money loans, expertise in their housing market, and auction skills have played a significant role in their results. Nevertheless, you are certain that your first class rehab and renovation knowledge will assist you to do a quality job for this project — furthermore, you already have lined up one of the most suggested contractors in town to work on the project.
But how can you find the needed capital for flipping? In the event you approach a standard lender, much like a bank for a mortgage loan, it's more than likely going to take, as a minimum, 4-8 weeks for your approval to be completed and the funds to be sent out. With the sellers wanting a fast closing, that does not appear to be a wise idea to you at all.
With banks bringing in harder loan guidelines in the past several years, it is now harder for a self-employed individual to obtain a mortgage loan, particularly if his credit score is not perfect. So does this mean you are without an option, but to drop your dream of getting into rehabbing? Never, on the grounds that you could always use the Grand Island hard money loan approach to finance your home renovating project.
A hard money home loan in Grand Island offers what's viewed as essential to most real estate sales — a quick closing of only a 2-3 weeks and at many times even less. Also, hard money lenders can approve loans up to 70% LTV of the home's valuation, as determined by a credentialed third-party appraiser. At first, hard money real estate loans, with starting interest rates of 10%, seem to be costlier than bank financing. But if you understand these are not long-term mortgage loans, the rate tends to be misleading. Short-term loans of several months to a few years are best understood in terms of cost of capital, much like all other expenditures involved with a project. When you have resold the property or home and have made a positive gain, you'll be able to recover this expense from the home — much like recuperating the money necessary for the brand-new kitchen appliances that you have put in.
In addition, even individuals with low credit can easily qualify for a hard money mortgage. Grand Island hard money lenders do not take on a loan solely on the basis of the customer's credit score — rather they will assess the property or home, its valuation and location, and the property's capacity to pay back the financing on its own. Additional factors that affect an individual's acceptance for a hard money real estate loan can include what amount of money he is in a position to put towards a down payment, his previous experience being a real estate investor, and price of comparative, fairly recently sold properties in the neighborhood.
Finding a hard money lender in Grand Island to finance your real estate project is not very challenging, as long as the opportunity in front of you is promising and boasts the right potential for returns. Complete the contact form on this page or call us and let's discuss the property you have in mind.
A loan specialist will be in touch shortly