Hard Money Loans in Grandville
There is this amazing possibility for rehabbing and flipping this wonderful old property or home in a very good part of town and it looks a lot like the deal you've been eagerly waiting on for quite a while. Professional house flippers, similar to the young married couple on Flip or Flop, HGTV's reality flipping series, are capable of earning a gain of $40-$50k for most homes. It goes without saying their past experiences rehabbing, understanding of hard money loans, familiarity with the housing market, and auction skills have played a big role in their successes. Having said that, you have recently been brushing up your rehab and renovation skills, have got a building contractor lined up and are certain that you're capable of doing a bang up job for this property.
But how do you get the necessary financing for flipping? A typical lending institution, like for example a bank, takes at a minimum 1 to 2 months to authorize the financing and release the monies. So if you are hoping for a fast closing, you must understand or know that this could cost you a couple weeks, causing you to lose out on the opportunity.
Furthermore, for those who have a less-than-perfect credit score or don't have a regular income, it may be more challenging to obtain bank financing, seeing the more stringent loan criteria banks have put in place of late. So should you give up and forego your aspiration to venture into fix and flips? Certainly not, considering that you can always go the Grandville hard money loan route to fund your home renovating project.
A hard money home loan in Grandville gives you what is viewed as essential to many real estate sales — a quick closing of only a couple of weeks and at times even less. What's more, the LTV value can reach up to 70% of the place's valuation, as evaluated by a competent appraiser. At first, hard money real estate loans, with starting interest rates of 10%, seem to be higher in price than bank loans. But in reality, the interest rate is not as relevant for these loans, since they are not long-term financing. When it comes to short-term loans of a handful of years or even less, you should think about them just like you would other expenditures for the project. And as soon as you've finally flipped the property or home, recovering this expense is comparable to recouping the expense for the bathroom or other improvements you did.
Apart from this, hard money mortgages are easy qualifying, even if you have poor credit. Instead of focusing only on the applicant's credit score or income, Grandville hard money lenders, who may be a private company or an individual, authorize a loan as a result of assessing the property value, its marketability, its location, and the likelihood of recovering their money in case of foreclosure. Other criteria that have an impact on a customer's approval for a hard money real estate loan can include how much money he can put towards a down payment, his prior experience as a real estate investor, and price range of similar, recently sold residences in the vicinity.
So in the event you run into a very good and worthwhile flipping opportunity, be assured you will have a hard money lender in Grandville, in a position to loan you the funds you need. Enter your info into the form on this page or get in touch with us via phone and let's discuss the property you have in mind.
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