Hard Money Loans in Green River
Imagine you've run across this excellent bargain on a fix and flip property you found in a terrific neighborhood, and you're either a skilled real estate investor or a first-timer who really wants to try out flipping homes. Professional property flippers, such as the young couple on Flip or Flop, HGTV's reality flipping program, are able to generate a gain of $40-$50k on average. It's fair to say their rehabbing experience, knowledge of hard money loans, familiarity with the housing market, and auction skills have played a big role in their success. Nonetheless, your rehab and remodeling skills aren't bad either — aside from that, you have already found the right general contractor to take on the project.
But how exactly do real estate investors find financing? A typical lending institution, like for example a bank, takes at least one to two months to approve the loan and deliver the money. Considering that all the home owners want a fast closing, that does not appear to be a great idea to you at all.
What's more, in case you have a sub-optimal credit score or don't receive a conventional source of income, it is usually more challenging to obtain bank financing, with the tougher loan criteria banks have introduced recently. So does this leave you with no other option, but to drop your dream of getting into home renovating? By no means, considering that you could always use the Green River hard money loan approach to pay for your home renovating project.
If you decide to get a hard money home loan in Green River, you're going to get what's perhaps most vital to real estate transactions throughout the country — a fast closing of approximately a couple weeks. In addition, the LTV value can go up to 70% of the property's valuation, as evaluated by a certified appraiser. On the surface, hard money real estate loans, with starting lending rates of 10%, appear to be higher in price than bank lending options. But once you appreciate that these are not long-term loans, the rate tends to be misleading. Short-term loans of a couple months to a handful of years are best understood as cost of capital, much like all other costs in connection with a project. Once you've resold the property or home and have made a good financial gain, you're able to get back this expense from the property or home — the same as recouping the money spent on the brand-new home appliances that you put in.
Besides, hard money mortgages are not difficult to qualify for, whether or not you have got a low credit rating. The customer's credit score is not the single determining factor for Green River hard money lenders — they also consider the home, how much it is worth, its location, and its potential to return their financial commitment if things should not work out as intended. Several other variables that influence a borrower's approval for a hard money real estate loan can include the amount he is in a position to put into a down payment, his former experience as a real estate investor, and price of similar, fairly recently sold properties in the vicinity.
So in case you have stumbled upon an excellent real estate opportunity with a huge probability of returns, you've also found yourself a hard money lender in Green River who's happy to finance your fix and flip ventures. Submit the contact form on this page or call us and let's discuss the property or properties you have in mind.
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