Hard Money Loans in Hammond
An outstanding deal on a fix and flip opportunity located in a nice neighborhood shows up out of the blue — seems too good to be true. You've probably heard that veteran house flippers, like the couple on HGTV's Flip or Flop, enjoy an impressive average return near $40,000 – $50,000. No need to explain that their rehabbing experience, understanding of hard money loans, familiarity with the housing market, and auction talents have been large factors to their successes. Nevertheless, you're convinced that your superb rehab and renovation skills will help you do a superb job on this house — in addition, you already have arranged to have one of the finest general contractors in the business to handle this project.
But how exactly do real estate investors find funds? A traditional lending institution, like for example a bank, takes a minimum of 1 to 2 months to authorize the mortgage and release the money. So if you happen to be wishing for a fast closing, you need to recognize that this may set you back by a couple of weeks, causing you to lose out on the house.
As well as this, if you have a less-than-perfect credit score or don't have a conventional source of income, it is usually more challenging to be eligible for a bank financing, with the tougher loan guidelines banks have put in place of late. So does that mean you have no option, but to abandon your dream of venturing into home renovating? Definitely not, because you always have the Hammond hard money loan alternative.
A hard money home loan in Hammond gives you what's probably most desired by real estate investors — a quick closing time period of as little as two weeks. In addition, the LTV value can go up to 70% of the property's valuation, as determined by a credentialed appraiser. At first, hard money real estate loans, with starting lending rates of 10%, seem to be higher in price than bank financing. But the lengths of these loans are relatively shorter, making the interest rate less significant. Short-term loans of several months to a few years are best approached as cost of capital, the same as all other expenditures in connection with a project. Right after you remodel and resell the house, recouping this expense is no different than recouping the expense for stainless steel appliances you put in the property.
Besides, hard money mortgages are not hard to qualify for, even when you posses very bad credit. Hammond hard money lenders don't take on a loan solely judging by the person's credit score — instead they additionally assess the home, its location and value, and the home's capacity to pay back the loan without the assistance of the person. Adding to that, if the applicant can demonstrate past experience in similar real estate projects, can put down cash towards a down payment, and the price of equivalent homes in the area works in his favor, he will have a good shot of qualifying to get a hard money real estate loan.
Finding a hard money lender in Hammond to fund your real estate project is not hard, so long as the opportunity before you is promising and possesses the right potential for returns. Complete the contact form or get in touch with us via phone and let's discuss the project you have in mind.
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