Hard Money Loans in Greenville
A remarkable deal on a fix and flip opportunity in a very good area of the city all of a sudden shows up — sounds too good to be true. Everybody knows that skilled professional flippers, like Tarek and Christina El Moussa who star in HGTV's reality flipping show, Fix or Flop, can make a typical profit margin of forty to fifty thousand dollars on their flips. And sure, they are aided in a major way as a result of their professional experience, auction abilities and knowledge of hard money loans. Having said that, you've also been brushing up your rehab and remodeling skills, have got a contractor arranged and are confident that you're capable of doing an impressive job for this property.
But capital can be a different problem altogether. For those who opt for a regular loan via a bank, you will wind up waiting approximately 4-8 weeks until eventually the mortgage loan is approved and your money is ready. Due to the fact all the sellers are seeking a fast closing, that does not appear to be a good idea to you whatsoever.
With banks establishing harder loan standards in the last few years, it is harder for a self-employed individual to get a home loan, especially if his credit situation is not optimal. So does this mean you have no option, but to drop your aspiration of venturing into the fix and flip business? Absolutely not, seeing as you always have the Greenville hard money loan option.
A hard money home loan in Greenville boasts what's perhaps most crucial to real estate investors — a fast closing time period of as few as fourteen days. And additionally, loan amounts can be made up to 70% loan-to-value of the as-is house value, as deemed by a professional appraiser. Some individuals regard hard money real estate loans to be higher in price than customary loans, since the interest rates for these loans typically start at 10%. But the time frames of these loans tend to be comparatively shorter, which makes the rate much less important. Short-term loans of a couple of 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 have sold the house and have made a positive return, you're able to reclaim this expense from the house — the same as recouping the money necessary for the brand-new kitchen appliances that you've installed.
Besides, hard money mortgages are not difficult to qualify for, whether or not you have very bad credit. As an alternative for focusing strictly on the borrower's credit score or income, Greenville hard money lenders, who could be a privately owned company or an individual person, approve a loan as a result of assessing the home value, its salability, its location, and the likelihood of getting back their capital in case they have to foreclose the loan. Several other factors that affect an applicant's approval for a hard money real estate loan include how much money he is able to put towards a down payment, his prior experience as a real estate investor, and selling price of comparable, just recently sold properties in the vicinity.
So any time you come across a really good and worthwhile flipping opportunity, rest assured you'll have a hard money lender in Greenville, equipped to loan you the cash that you need. Complete the contact form on this page or call us to discuss your property or properties.
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