Hard Money Loans in Grosse Pointe Woods
A remarkable deal on a fix and flip property in a good subdivision shows up out of the blue — sounds so good that it is hard to believe. Professional residential home flippers, similar to the young couple on Flip or Flop, HGTV's reality flipping show, are capable of earning a gain of $40-$50k for the majority of homes. And without a doubt, they are helped in a major way by their professional knowledge, auction skills and knowledge of hard money loans. Nonetheless, your rehab and remodeling skills aren't bad either — aside from that, you have already found an ideal general contractor to tackle the project.
But where do real estate investors find money? A typical lender, like for example a bank, takes at least one to two months to approve the loan and provide the money. Considering that the sellers are seeking a fast closing, that does not appear to be a great idea to you whatsoever.
With banks establishing tougher loan criteria in recent times, it is now tougher for a self-employed individual to find a mortgage loan, particularly if his credit situation is not flawless. So does that leave you with no option, but to drop your aspiration of venturing into home flipping? Absolutely not, given that you also have the Grosse Pointe Woods hard money loan alternative.
A hard money home loan in Grosse Pointe Woods provides what is deemed crucial to many real estate sales — a very fast closing of just a few weeks and oftentimes less. In addition, the LTV value can range up to 70% of the property value, as determined by a certified appraiser. With the loan rates starting out around 10%, hard money real estate loans may appear, at first, to be more pricey compared to traditional bank loans. But usually, the lending rate isn't as useful a measure for these loans, since they aren't long-term loans. Short-term loans of several months to a handful of years are best understood in terms of cost of capital, much like all other costs in connection with a project. Right after you rehab and unload the property, recuperating this expense is the same as recouping the cost of the home appliances you installed in the home.
Besides, hard money mortgages are not hard to qualify for, regardless if you have got very bad credit. The customer's credit score isn't the single deciding factor for Grosse Pointe Woods hard money lenders — in addition, they consider the home, how much it is worth, its location, and its capability to bring back their financial commitment if things should not work out as intended. The total amount that a person can put down in advance towards the property, how much experience he has in real estate investing, and selling price of equivalent homes in the same neighborhood are various other details that go into ascertaining an applicant's suitability for a hard money real estate loan.
So should you come across an outstanding and profitable investment opportunity, be assured you'll have a hard money lender in Grosse Pointe Woods, able to lend you the funds you'll need. Complete the contact form on this page or call us to discuss the project you have in mind.
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