Hard Money Loans in Granite City
Suppose you've come across this really great deal on a fix and flip property located in an ideal location, and you're either an experienced real estate investor or a first-timer who wants to try out flipping homes. Everyone knows that expert professional flippers, along the lines of Tarek and Christina El Moussa from HGTV's reality home flipping show, Fix or Flop, can readily turn a typical profit margin of $40,000 to $50,000 in their rehab business. Undoubtedly, you also realize that their success are attributed to the simple fact that they are experts, are knowledgeable in hard money loans, they understand the marketplace quite well and furthermore, they know how to work an auction to purchase their properties at an appropriate price. Having said that, you've recently been brushing up your rehab and remodeling knowledge, have a very good licensed contractor arranged and are certain that you're capable of doing a bang up job for this home.
But how exactly can real estate investors get capital? For those who approach a standard lending institution, such as a bank for financing, it's likely going to take, at the very least, 4-8 weeks for the approval to be completed and the funds to be dispersed. Considering that the home owners want a fast closing, that does not appear to be a great idea to you in the slightest.
To add to it, banks have already been tightening up their lending criteria in recent years, rendering it more difficult for a person to obtain an ordinary loan if their credit circumstances are not perfect or he doesn't have a regular salaried profession. So should you give up and forego your desire to get into real estate? Most certainly not, seeing as you always have the Granite City hard money loan option.
If you should apply for a hard money home loan in Granite City, you have access to what is perhaps most essential to real estate negotiations across the country — a quick closing of approximately 2 weeks. Also, hard money lenders will often consent to lending up to 70% LTV of the property's valuation, as identified by a credentialed third-party evaluator. Some people believe hard money real estate loans to be more expensive than regular financing, since the lending rates for these loans ordinarily start off at 10%. But the time frames of these loans tend to be comparatively shorter, which means the rate is much less important. When it comes to short-term loans of a few years or even less, you should consider them similar to any sort of other expenditure for your project. Once you've turned the house and have made a successful return, you can recoup this expense from the home — very much like recovering the money spent on the brand-new home appliances that you've installed.
Moreover, even someone with bad credit can still be eligible for a hard money mortgage. As an alternative for focusing entirely on the applicant's credit score or source of income, Granite City hard money lenders, who could be a privately owned company or an individual, say yes to a loan after assessing the property value, its marketability, where it is located, and the odds of getting back their money in case of foreclosure. Other factors that have an impact on an individual's eligibility for a hard money real estate loan can include the amount he is in a position to put into a down payment, his previous experience being a real estate investor, and price of similar, fairly recently sold properties nearby.
If you happen to have stumbled on a really great real estate opportunity with a huge prospect of returns, you've also discovered a hard money lender in Granite City who is prepared to provide financing for your flipping ventures. Submit the contact form on this page or get in touch with us via phone and let's talk about the project you have in mind.
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