Hard Money Loans in Great Falls
You discovered this phenomenal possibility for rehabbing and flipping this wonderful outdated house in a good part of town and it looks like the one you've been anticipating for quite a while. Professional property flippers, such as the young couple on Flip or Flop, HGTV's reality flipping series, are capable of bringing in a gain of $40-$50k for most homes. Without question, their rehabbing experience, understanding of hard money loans, expertise in their market, and auction skills have had a big part in their results. With that being said, you have likewise been developing your rehab and remodeling knowledge, have a very good contractor lined up and are positive that you're capable of doing an impressive job for this house.
But capital is often a separate problem altogether. A standard lender, for instance a bank, takes at a minimum 1-2 months to consent to the loan and hand over the funds. Given that home owners would rather have a fast closing, you might want to begin searching for some other financing alternatives.
With banks establishing tougher loan criteria in the recent past, it is much harder for a self-employed individual to obtain a mortgage loan, especially when his credit circumstances are not optimal. So does that mean you are without an option, but to drop your aspiration of venturing into the fix and flip business? Certainly not, given that you also have the Great Falls hard money loan alternative.
A hard money home loan in Great Falls promises what's probably most crucial to real estate investors — a fast closing time of as little as fourteen days. Plus, the LTV value can go up to 70% of the property's valuation, as determined by a competent appraiser. With the rates starting off at about 10%, hard money real estate loans may look, at first glance, to be more expensive when compared with conventional bank lending products. But usually, the rate of interest isn't as useful a measure for these loans, given that they will never be long-term loans. As it pertains to short-term loans of 1 or 2 years or less, you should think of them similar to every other expenditure for your project. And as soon as you've finally turned the house, recouping this expense is identical to recovering the expense for all the bathroom or other upgrades you did.
Besides, hard money mortgages are not difficult to qualify for, even when you posses below-average credit. Great Falls hard money lenders don't take on a loan strictly according to the applicant's credit score — instead they additionally analyze the property, its value and location, and the home's ability to pay back the loan independent of the applicant. Several other factors that have an impact on an individual's approval for a hard money real estate loan can include what amount of money he is able to put into a down payment, his prior experience as a real estate investor, and price range of comparative, just recently sold properties in the area.
So in case you have stumbled on a wonderful home to flip with a significant potential for returns, you've also stumbled upon a hard money lender in Great Falls who is willing to provide funding for your rehab project. Complete the contact form or give us a call to discuss the property or properties you have in mind.
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