Hard Money Loans in Greencastle
Suppose you've encountered this really great deal for a fix and flip property in a terrific location, and you happen to be either a seasoned real estate investor or a first-timer who is looking to try his hand at flipping. You've probably heard that competent home flippers, similar to the husband and wife on HGTV's Flip or Flop, turn a remarkable average return close to $40,000 – $50,000. And indeed, they are aided in a big way as a result of their professional know-how, auction skills and familiarity with hard money loans. Having said that, you've recently been cultivating your rehab and remodeling knowledge, have a very good licensed contractor arranged and are confident that you're capable of doing a great job on this home.
But where do you obtain the needed capital for flipping? Should you apply for a regular loan from the bank, you will need to wait roughly 4-8 weeks until the money is authorized and the money is readily available. With all the sellers looking for a fast closing, that does not appear to be a wise idea to you at all.
As well as this, if you have a sub-optimal credit situation or don't have a conventional income, it is usually tougher to obtain a bank loan, seeing the tighter loan criteria banks have issued lately. So should you give up and abandon your aspiration to get into the real estate market? By no means, because you can always go the Greencastle hard money loan route to fund your rehab project.
A hard money home loan in Greencastle gives you what is probably most essential to real estate investors — a very fast closing in as few as two weeks. Also, hard money lenders frequently agree to lending up to 70% LTV of the property value, as calculated by a credentialed third-party evaluator. On the surface, hard money real estate loans, with starting interest rates of 10%, appear to be more pricey than bank lending options. But once you consider these loans are not long-term mortgage loans, the rate tends to be misleading. The price tag on such short-term loans ought to be considered much like every other expense that you will have to meet pertaining to the project. After you remodel and unload the home, recuperating this expense is just like recuperating the money you spent for new kitchen appliances you put in the place.
Also, it isn't difficult to be eligible for a hard money mortgage, regardless if your credit rating is not that impressive. Greencastle hard money lenders do not authorize a loan solely based on the applicant's credit score — instead they will analyze the home, its location and value, and the home's capacity to pay back the financing by itself. On top of this, if the person have proven experience in comparable real estate projects, can place down money for the down payment, and the cost of comparable properties in the area works in his favor, he has a very good chance of being eligible to obtain a hard money real estate loan.
So should you come across a very good and profitable investment opportunity, feel comfortable knowing you will have a hard money lender in Greencastle, ready to loan you the funds that you need. Submit the form on this page or get in touch with us via phone to talk about the property you have in mind.
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