Hard Money Loans in Grosse Pointe Park
A fabulous deal on a fix and flip opportunity in an excellent subdivision shows up out of the blue — sounds so good that it is hard to believe. You've probably heard that veteran house flippers, like the married couple on HGTV's Flip or Flop, enjoy a remarkable average return of around $40,000 – $50,000. Of course, you also understand that their success can be attributed to the simple fact that they are professionals, are well versed in hard money loans, they know the marketplace really well and in addition, they are good at working a public auction for getting an appropriate price. With that being said, you've recently been brushing up your rehab and renovation knowledge, have a very good general contractor lined up and are certain that you will be able to do a great job on this property.
But where precisely do real estate investors get financing? Should you apply for an ordinary bank loan, you will have to wait around somewhere around one to two months until eventually the loan is authorized and the funding is readily available. With all the sellers seeking a fast closing, that doesn't appear like a good idea to you in the slightest.
Furthermore, should you have a sub-optimal credit score or do not have a regular income source, it is normally more challenging for you to obtain a bank loan, seeing the more stringent loan requirements banks have issued in recent times. So should you give up and forego your desire to venture into the real estate market? Certainly not, given that you also have the Grosse Pointe Park hard money loan alternative.
A hard money home loan in Grosse Pointe Park gives you what is viewed as imperative to many real estate deals — a very fast closing of just a few weeks and at many times less. Further, financing can be made up to 70% loan-to-value of the as-is home value, as determined by a licensed appraiser. At first, hard money real estate loans, with starting lending rates of 10%, could be seen as higher priced than bank lending options. But once you appreciate that these loans are not long-term loans, the rate of interest can be misleading. The price of such short-term loans ought to be viewed on par with every other expense that you will have to meet for the project. And when you've turned the property or home, recuperating this expense is comparable to recuperating the expense for the bathroom updates you did.
Also, it's simple to qualify for a hard money mortgage, regardless if your credit score is not that impressive. Instead of focusing primarily on the borrower's credit score or wages, Grosse Pointe Park hard money lenders, who may be a private company or an individual, authorize a loan after assessing the property value, its salability, its location, and the possibility of recovering their capital in the event of foreclosure. How much a borrower can put down in advance towards the house, how much experience he has in real estate investments, and price range of comparative properties in the area are other details that go into ascertaining an applicant's qualification for a hard money real estate loan.
So should you come across a really good and profitable investment opportunity, relax knowing you'll have a hard money lender in Grosse Pointe Park, able to lend you the capital you'll need. Complete the form or call us to talk about the property you have in mind.
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