Hard Money Loans in Greenwood Village
There's this outstanding possibility for rehabbing and flipping this wonderful out of date property in a very good part of town and it seems a lot like the deal you've been looking forward to for quite a while. You've probably heard that veteran home flippers, similar to the husband and wife on HGTV's Flip or Flop, have an impressive average return close to $40,000 – $50,000. It goes without saying their rehabbing experience, understanding of hard money loans, familiarity with the housing market, and auction talents have played a big role in their results. On the other hand, you're convinced that your superb rehab and remodeling abilities will enable you to do a quality job on the home — furthermore, you have already lined up one of the premier contractors in the area to take on this job.
But where do you find the necessary funding for home flipping? If you apply for an ordinary loan via a bank, you will need to wait somewhere around 4-8 weeks until eventually the money is approved and your funding is ready. Since the majority of home owners would prefer a fast closing, you might want to begin searching for some other financing alternatives.
With banks bringing in tougher loan guidelines in the last few years, it is now more challenging for a self-employed individual to get a home loan, particularly if his credit rating is not perfect. So do you have to give up and forego your desire to get into the real estate market? Most certainly not, seeing as you always have the Greenwood Village hard money loan alternative.
A hard money home loan in Greenwood Village provides what is regarded as crucial to most real estate sales — a quick closing of only a few weeks and at many times even less. Additionally, loan amounts can be made up to 70% loan-to-value of the "as is" house's valuation, as calculated by a licensed appraiser. At first, hard money real estate loans, with starting lending rates of 10%, seem to be more costly than bank financing. But in reality, the rate of interest isn't as pertinent for these loans, simply because they aren't long-term financing. Short-term loans of a couple of months to a handful of years are best approached as cost of capital, very much like any other expense in connection with a project. Once you have sold the home and have made a successful financial gain, you can recover this expense from the property or home — much like recuperating the cost of brand-new home appliances that you have put in.
Aside from that, hard money mortgages are not difficult to qualify for, even when you have very bad credit. Greenwood Village hard money lenders do not approve a loan strictly according to the applicant's credit score — rather they additionally look at the property, its valuation and location, and the property's ability to pay back the financing by itself. Several other factors that have an impact on a person's eligibility for a hard money real estate loan include how much money he is able to put into a down payment, his former experience as a real estate investor, and price range of similar, just recently sold homes in the area.
Finding a hard money lender in Greenwood Village to finance your renovation project is not very hard, as long as the opportunity that lies ahead of you is promising and has a good prospect for returns. Enter your info into the form or give us a call to discuss the property or properties you have in mind.
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