Hard Money Loans in Grand Junction
Imagine you've encountered this truly good bargain for a fix and flip property in a great neighborhood, and you happen to be either an experienced real estate investor or a newbie who really wants to try out flipping houses. You may have heard that veteran home flippers, much like the couple on HGTV's Flip or Flop, turn an impressive average profit margin near $40,000 – $50,000. Undoubtedly, you also realize that their successes can be credited to the fact that they're professionals, are proficient in hard money loans, they understand the market really well and in addition, they are good at working an auction for getting a reasonable deal. Nonetheless, your rehab and renovation skills aren't that bad either — besides, you have already found a good contractor to start this home.
But where can you obtain the necessary financing for flipping? If you approach a common lending institution, much like a bank for a loan, it can take, at the very least, 30-60 days for the approval to be completed and the money to be sent out. Considering that all the home owners are looking for a fast closing, that does not appear like a good option to you in the slightest.
Moreover, should you have an unfavorable credit situation or don't have a consistent income source, it is normally more challenging for you to obtain a bank loan, considering the tougher loan requirements banks have put in place of late. So will inadequate funding prevent you from pursuing your ambitions? Certainly not, given that you always have the Grand Junction hard money loan option.
When you apply for a hard money home loan in Grand Junction, you have access to what is perhaps most vital to real estate negotiations throughout the country — a fast closing of around two weeks. Further, loans are made up to 70% loan-to-value of the as-is house's valuation, as established by a licensed appraiser. At first, hard money real estate loans, with starting lending rates of 10%, appear to be higher priced than bank financing. But in reality, the interest rate isn't as useful a measure for these loans, simply because they will never be long-term financing. As it pertains to short-term loans of a few years or less, you should look at them similar to every other expenditure for the project. Once you have sold the house and have made a good profit, you're able to recover this expense from the house — very much like recovering the money necessary for the brand-new home appliances that you installed.
Furthermore, even someone with poor credit can easily qualify for a hard money mortgage. Rather than focusing solely on the person's credit score or income, Grand Junction hard money lenders, who could be a privately owned company or an individual, say yes to a loan as a result of evaluating the property value, how easy it will be to market, where it is located, and the possibility of recouping their capital if they have to foreclose the loan. How much of their own money an applicant can put down beforehand for the house, how much experience he has in real estate investments, and selling price of equivalent homes in the area 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 Grand Junction to cover expenses for your renovation project is not difficult, provided that the opportunity that lies before you is promising and boasts the right prospect for returns. Fill out the form or give us a call and let's talk about your property.
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