Hard Money Loans in Hamilton
A fantastic buy on a fix and flip property located in a very good neighborhood all of a sudden shows up — seems too good to be true. Many people know that knowledgeable professional flippers, along the lines of Tarek and Christina El Moussa who star in HGTV's reality home flipping program, Fix or Flop, can readily make an average profit of forty to fifty thousand dollars in their rehab business. And without a doubt, they are helped in a big way by their professional knowledge, auction expertise and knowledge of hard money loans. On the other hand, you're convinced that your superb rehab and renovation knowledge will assist you to do a quality job on the project — what's more, you already have arranged to have one of the most recommended general contractors in the area to take care of this project.
But money can be a different question entirely. Should you meet with a standard lender, like a bank for funding, it's very likely going to take, as a minimum, 30-60 days for your approval to be completed and your funds to be dispersed. With the sellers looking for a fast closing, that does not appear to be a good idea to you in the slightest.
On top of this, banks have been tightening their lending criteria in recent years, making it hard for a person to receive a traditional loan if their credit rating is not flawless or he is lacking a regular salaried occupation. So does that leave you with no option, but to give up your ambition of getting into home renovating? Definitely not, because you always have the Hamilton hard money loan alternative.
When you apply for a hard money home loan in Hamilton, you will get what is perhaps most important to real estate negotiations across the country — a very fast closing of roughly a couple weeks. Furthermore, hard money lenders are capable of doing funding up to 70% LTV of the home's valuation, as established by a qualified third-party evaluation. Some people regard hard money real estate loans to be more costly than standard financing, since the lending rates for such loans typically start out at 10%. But usually, the rate of interest is not as relevant for these loans, since they are not long-term loans. Short-term loans of several months to a handful of years are best approached as cost of capital, the same as all other expenditures related to a project. And once you have finally turned the home, recovering this expense is comparable to recuperating the expense for the kitchen and bath improvements you performed.
In addition, even someone with low credit can easily qualify for a hard money mortgage. The person's credit score will not be the sole deciding factor for Hamilton hard money lenders — additionally, they consider the home, its market valuation, its location, and its capability to return their financial commitment if things do not work out as planned. Adding to this, if the person can demonstrate prior experience in comparable real estate projects, can place down cash towards a down payment, and the value of comparable homes in the neighborhood works to his benefit, he will have a very good chance of being approved for a hard money real estate loan.
So if you have stumbled on a wonderful home to flip with a huge prospect of returns, you have also found yourself a hard money lender in Hamilton who is prepared to finance your flipping venture. Submit the form on this page or call us to talk about the property you have in mind.
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