Hard Money Loans in Greenville
Suppose you've run across this really great bargain for a fix and flip property you found in an ideal location, and you are either an experienced real estate investor or a first-timer who wants to try out flipping homes. Professional home flippers, much like the young married couple on Flip or Flop, HGTV's reality flipping series, are able to earn a gain of $40-$50k for the majority of homes. And without a doubt, they are helped in a big way as a result of their professional know-how, auction expertise and familiarity with hard money loans. On the other hand, you're certain that your superb rehab and renovation knowledge will assist you to do an outstanding job for this project — in addition, you already have lined up one of the most recommended building contractors in the business to take on this job.
But where can you get the needed funding for home flipping? If you approach a customary lending institution, such as a bank for a loan, it very likely will take, at the very least, four to eight weeks for your acceptance to come through and your funds to be furnished. Given that sellers prefer a fast closing, you might want to begin looking for some other funding alternatives.
With banks adding harder loan guidelines in the past few years, it is harder for a self-employed individual to obtain a mortgage loan, especially when his credit score is not flawless. So does this mean you are without an option, but to abandon your aspiration to venture into home renovating? Not at all, especially when Greenville hard money loans can help you achieve many amazing things in real estate.
If you should get a hard money home loan in Greenville, you'll get what is possibly most vital to real estate transactions across the country — a quick closing of approximately 14 days. Also, hard money lenders can do funding up to 70% LTV of the property value, as identified by a credentialed third-party appraiser. With the interest rates starting out near 10%, hard money real estate loans may look, at first glance, to be higher priced when compared with traditional bank lending products. But in reality, the interest rate is not as pertinent for these loans, because they will never be long-term financing. Short-term loans of a couple months to a few years are best looked at as cost of capital, much like all other expenses associated with a project. And when you've flipped the home, recovering this expense is comparable to recuperating the expense for all the bathroom or other updates you performed.
Furthermore, even a person with poor credit can easily be eligible for a hard money mortgage. Rather than focusing entirely on the applicant's credit score or wages, Greenville hard money lenders, who can be a privately owned company or an individual person, say yes to a loan after examining the home value, its marketability, its location, and the probability of recouping their money in the event of foreclosure. Adding to this, if the individual can demonstrate past experience in equivalent real estate ventures, can place down cash towards a down payment, and the value of equivalent homes in the area works in his favor, he will have a very good chance of being eligible for a hard money real estate loan.
Finding a hard money lender in Greenville to finance your real estate project is not difficult, as long as the opportunity that lies before you is promising and has a strong potential for returns. Fill out the form or call us and let's talk about your property.
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