Hard Money Loans in Grand Ledge
A fantastic bargain on a fix and flip opportunity located in a nice area of the city suddenly turns up — sounds so good that it's difficult to believe. Expert residential home flippers, similar to the young married couple on Flip or Flop, HGTV's reality flipping series, are capable of hauling in a gain of forty to fifty grand on most projects. Undoubtedly, you also realize that their successes are due to the fact that they are industry experts, are well versed in hard money loans, they understand the marketplace really well and in addition, they are good at working a public auction to purchase their properties at an appropriate price. Nonetheless, your rehab and remodeling skills aren't bad either — besides, you've already found a good contractor to take on the project.
But how do real estate investors find funding? In the event you meet with a common lender, like a bank for funding, it is very likely going to take, as a minimum, 30-60 days for your approval to come through and the funds to be accessible. So if you are expecting a fast closing, it's important to be aware that this will cost you weeks, causing you to lose out on the house.
With banks bringing in harder loan standards in the past several years, it is tougher for a self-employed individual to obtain a mortgage loan, especially if his credit rating is not perfect. So does that mean you have no option, but to give up your ambition of getting into the fix and flip business? Never, considering that you can always go the Grand Ledge hard money loan route to pay for your rehab project.
When you obtain a hard money home loan in Grand Ledge, you have access to what is perhaps most essential to real estate transactions across the country — a quick closing of approximately 14 days. What's more, the LTV value can range up to 70% of the place's valuation, as determined by a certified appraiser. With lending rates starting out near 10%, hard money real estate loans might seem, initially, to be more expensive as compared with traditional bank loans. But if you appreciate that these loans are not long-term mortgage loans, the rate of interest can be misleading. The cost of such short-term loans ought to be evaluated much like every other expenditure that you would encounter in the course of the project. Once you've sold the property and have made a successful return, you can recoup this expense from the home — just like recovering the money spent on the brand-new kitchen appliances that you've installed.
Besides, hard money mortgages are not hard to qualify for, even if you have got a low credit rating. Instead of focusing primarily on the borrower's credit score or net income, Grand Ledge hard money lenders, who can be a private company or an individual, authorize a loan after analyzing the property value, its salability, its location, and the odds of recovering their money if they have to foreclose the loan. How much an applicant can put upfront towards the home, how much experience he has in real estate investments, and price range of comparative homes in the vicinity are other factors that go into analyzing a person's suitability for a hard money real estate loan.
So any time you run into a very good and profitable investment opportunity, feel comfortable knowing you'll have a hard money lender in Grand Ledge, in a position to loan you the capital you will need. Submit the contact form on this page or give us a call to discuss the project you have in mind.
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