Hard Money Loans in Green Bay
Imagine you've encountered this excellent deal for a fix and flip property you found in a great location, and you're either an experienced real estate investor or a newbie who really wants to try his hand at flipping. You may have heard that competent home flippers, similar to the husband and wife on HGTV's Flip or Flop, have an impressive average profit close to forty to fifty thousand dollars. And indeed, they are helped in a major way due to their professional experience, auction skills and familiarity with hard money loans. Nonetheless, your rehab and renovation knowledge isn't that bad either — in any case, you have already located a suitable contractor to start this project.
But capital is often a separate question entirely. For those who apply for a traditional bank loan, you will have to wait around approximately 30-60 days until eventually the mortgage loan is approved and the funding is ready. Because most home owners would rather have a fast closing, it may be best to begin searching for some other financing options.
What's more, if you have a sub-optimal credit rating or do not receive a routine income source, it usually is tougher for you to be eligible for a a bank loan, with the tougher loan criteria banks have issued recently. So must you give up and abandon your aspiration to get into the real estate market? By no means, especially while Green Bay hard money loans will assist you to realize many amazing things in the real estate world.
A hard money home loan in Green Bay promises what's probably most crucial to real estate investors — a very fast closing time of as little as 14 days. Plus, the LTV value can reach up to 70% of the home's valuation, as evaluated by a competent appraiser. With interest rates starting at about 10%, hard money real estate loans might appear, at first glance, to be more costly when compared with traditional bank financing. But usually, the interest rate is not as relevant for these loans, simply because they aren't long-term financing. The price tag on such short-term loans should be evaluated much like any other expenditure that you might encounter in the course of the project. After you renovate and sell the house, recouping this expense is the same as recouping the one for stainless steel appliances you placed into the house.
Aside from that, hard money mortgages are easy qualifying, whether or not you have less-than-perfect credit. The applicant's credit score will not be the sole deciding factor for Green Bay hard money lenders — they also examine the home, what is it valued at, where it is located, and its ability to bring back their investment if everything does not work out as planned. Additional factors that influence a customer's eligibility for a hard money real estate loan include the amount he is in a position to put towards a down payment, his past experience as a real estate investor, and price of similar, just recently sold properties in the area.
Finding a hard money lender in Green Bay to fund your real estate project is not very challenging, as long as the opportunity before you is promising and possesses a strong potential for returns. Submit the contact form on this page or call us to discuss the project you have in mind.
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