Hard Money Loans in Greenville
Suppose that you've stumbled upon this excellent bargain on a fix and flip property you found in an ideal neighborhood, and you're either a skilled real estate investor or a first-timer who hopes to try his hand at flipping. Professional residential home flippers, such as the young married couple on Flip or Flop, HGTV's reality flipping series, are able to earn a gain of $40-$50k on the majority of projects. Of course, you also understand that their success are due to the simple fact that they are industry experts, are knowledgeable in hard money loans, they know market trends really well and they also know how to work an auction to purchase their properties at a good deal. Nonetheless, your rehab and renovation knowledge isn't that bad either — aside from that, you've already found the right general contractor to handle this job.
But funding is usually a separate question altogether. A standard lender, say for example a bank, takes no less than 1-2 months to authorize the financing and hand over the capital. So if you're wishing for a fast closing, you have to understand that this could cost you a couple of weeks, making you lose out on the sale.
Furthermore, for those who have a sub-optimal credit rating or do not have a conventional income source, it may be tougher to qualify for a bank loan, with the tougher loan requirements banks have put in place lately. So will inadequate financing prevent you from sticking to your dream? Absolutely not, seeing as you also have the Greenville hard money loan option.
If you decide to opt for a hard money home loan in Greenville, you're going to get what's possibly most vital to real estate offers across the country — a very fast closing of approximately 2 weeks. Aside from that, loans can be made up to 70% loan-to-value of the as-is value, as established by a qualified appraiser. On the surface, hard money real estate loans, with starting lending rates of 10%, seem to be more expensive than bank financing. But the time frames of these loans tend to be much shorter, making the rate much less significant. Short-term loans of a couple of months to a few years are best looked at as cost of capital, very much like every other expense associated with a project. After you renovate and resell the house, recuperating this expense is just like recouping the one for home appliances you installed in the property.
In addition, even a person with weak credit can easily be eligible for a hard money mortgage. The applicant's credit score isn't the single deciding factor for Greenville hard money lenders — additionally, they examine the house, how much it is worth, its location, and its capacity to return their financial commitment if everything does not go as planned. Additional variables that influence an individual's approval for a hard money real estate loan include the amount he is in a position to put towards a down payment, his prior experience as a real estate investor, and price of comparable, fairly recently sold residences in the area.
So if you have found a really great real estate opportunity with a huge potential for returns, you've also found yourself a hard money lender in Greenville that is willing to finance your flipping venture. Submit the contact form on this page or get in touch with us via phone and let's talk about the project you have in mind.
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