Hard Money Loans in Havre
An incredible deal on a fix and flip opportunity located in a very good neighborhood all of a sudden shows up — seems so good that it's difficult to believe. You may have heard that competent property flippers, much like the married couple on HGTV's Flip or Flop, turn a remarkable average profit margin of around $40,000 – $50,000. And indeed, they are helped in a major way via their professional experience, auction expertise and familiarity with hard money loans. Still, your rehab and renovation skills aren't bad either — aside from that, you have already found a suitable general contractor to take on this project.
But how do you get the needed funding for home flipping? A traditional lending institution, like for example a bank, takes at least 1 to 2 months to consent to the mortgage and deliver the funds. So if you happen to be expecting a fast closing, you have to understand that this will set you back by a few weeks, making you lose out on the house.
On top of this, banks have been tightening their lending criteria as of late, making it challenging for a person to obtain a conventional home loan if their credit circumstances are not flawless or he does not have a regular salaried profession. So will inadequate funds keep you from sticking to your aspirations? Absolutely not, because you always have the Havre hard money loan alternative.
A hard money home loan in Havre provides what's deemed vital to many real estate transactions — a very fast closing of only a couple of weeks and more often than not less. And additionally, loans can be made up to 70% loan-to-value of the "as is" value, as calculated by a licensed appraiser. At first, hard money real estate loans, with starting interest rates of 10%, could be seen as higher priced than bank lending options. But the term lengths for these loans are much shorter, which makes the interest rate far less significant. Short-term loans of a couple months to a few years are best understood as cost of capital, similar to all other expenses involved with a project. And when you have finally flipped the property, recouping this expense is the exact same as recouping the expense for the bathroom improvements you performed.
Furthermore, even individuals with low credit can easily qualify for a hard money mortgage. The customer's credit score will not be the sole deciding factor for Havre hard money lenders — they also look at the piece of real estate, what is it valued at, where it is located, and its potential to earn back their financial commitment if things should not go as planned. How much of their own money a borrower can put down in advance for the house, how much experience he has in real estate investments, and selling price of comparable homes in the same vicinity are various other details that go into analyzing a person's suitability for a hard money real estate loan.
So in case you have stumbled upon a really good real estate opportunity with a significant prospect of returns, you have also found yourself a hard money lender in Havre who is happy to fund your flipping ventures. Complete the form or give us a call to talk about your project.
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