Hard Money Loans in Grandview
Suppose that you've stumbled upon this excellent bargain for a fix and flip property in an ideal location, and you happen to be either a seasoned real estate investor or a first-timer who is looking to try his hand at flipping. You've heard that competent house flippers, similar to the couple on HGTV's Flip or Flop, enjoy a remarkable average return close to forty to fifty thousand dollars. Of course, you also understand that their results are credited to the simple fact that they're experts, are well versed in hard money loans, they understand market trends quite well and in addition, they are good at working a public auction for getting a good price. Still, your rehab and remodeling knowledge isn't that bad either — besides, you have already identified the right contractor to start this home.
But where can you get the necessary funding for home flipping? A standard lender, for instance a bank, takes at a minimum one to two months to consent to the loan and release the capital. Since the majority of home owners would prefer a fast closing, you might have to begin searching for some other financing alternatives.
To add to it, banks have already been tightening up their lending standards as of late, making it tough for people to receive a typical loan if their credit circumstances are not flawless or he does not have a regular salaried profession. So does this leave you with no other option, but to give up your ambition of getting into rehabbing? Definitely not, seeing as you also have the Grandview hard money loan option.
A hard money home loan in Grandview promises what is probably most desired by real estate investors — a quick closing time period of as little as a few weeks. Plus, the LTV value can reach up to 70% of the home value, as determined by a certified appraiser. With the interest rates starting off at about 10%, hard money real estate loans might appear, at first, to be higher in price when compared with traditional bank financing. But in reality, the interest rate isn't as pertinent for these loans, simply because they are not long-term financing. Short-term loans of a couple months to a handful of years are best thought of as cost of capital, the same as all other costs associated with a project. Once you've resold the home and have made a successful gain, you'll be able to get back this expense from the property or home — the same as recovering the money spent on the brand-new kitchen appliances that you've put in.
In addition, even someone with poor credit can still be eligible for a hard money mortgage. The customer's credit score is not the sole deciding factor for Grandview hard money lenders — additionally, they look at the property, what is it valued at, its location, and its potential to return their financial commitment if things should not go as intended. How much money an applicant can put upfront towards the house, how much experience he has in real estate investments, and price range of comparable properties in the same vicinity are other details that go into establishing a person's suitability for a hard money real estate loan.
Locating a hard money lender in Grandview to cover expenses for your flipping business is not hard, provided that the opportunity that lies before you is promising and boasts a strong prospect for returns. Submit the contact form or give us a call to discuss your property.
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