Hard Money Loans in Greenwood
You discovered this amazing possibility for rehabbing and flipping this wonderful out of date property or home in a fantastic part of town and it looks like the deal you have been wanting for quite a while. You may have heard that veteran house flippers, like the married couple on HGTV's Flip or Flop, turn an impressive average return close to forty to fifty thousand dollars. Without question, their past experiences rehabbing, knowledge of hard money loans, familiarity with the market, and auction talents have had a significant role in their results. Nevertheless, you're convinced that your superb rehab and remodeling abilities will help you do a quality job for this property — what's more, you already have arranged to have one of the most sought after contractors in town to take on this job.
But how can real estate investors obtain capital? A traditional lending institution, for instance a bank, takes at a minimum 1 to 2 months to authorize the mortgage and release the money. Due to the fact all the sellers are seeking a fast closing, that does not appear to be a good option to you in the slightest.
With banks adding more challenging loan guidelines in the past several years, it's become much harder for a self-employed individual to obtain a mortgage loan, especially if his credit circumstances are not flawless. So do you have to give up and forego your dream to venture off into the real estate market? Not at all, particularly while Greenwood hard money loans enable you to achieve great things in real estate.
A hard money home loan in Greenwood boasts what is probably most essential to real estate investors — a fast closing time of as few as two weeks. Besides that, hard money lenders will often consent to loans up to 70% LTV of the home's valuation, as established by a certified third-party appraiser. With loan rates starting out at about 10%, hard money real estate loans may appear, initially, to be more costly as compared with conventional bank loans. But usually, the interest rate isn't as useful a measure for these loans, since they aren't long-term loans. The price tag on such short-term loans should be viewed much like any other expenditure that you would have to meet for the project. And once you've turned the property or home, recouping this expense is comparable to recovering the expense for the kitchen and bath upgrades you performed.
Furthermore, even an individual with weak credit can still qualify for a hard money mortgage. Greenwood hard money lenders don't take on a loan exclusively according to the person's credit score — rather they will evaluate the property or home, where it is located and how much it is worth, and the home's capacity to pay back the loan without the assistance of the applicant. Several other variables that impact a person's eligibility for a hard money real estate loan include how much he is able to put into a down payment, his previous experience being a real estate investor, and selling price of similar, just recently sold properties in the area.
So if you have found a really great fixer-upper with a huge prospect of returns, you have also discovered a hard money lender in Greenwood who's willing to fund your rehab venture. Complete the contact form on this page or give us a call to discuss the property or properties you have in mind.
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