Hard Money Loans in Henry
There is this phenomenal possibility for fixing and flipping this wonderful out of date property or home in a good location and it looks a lot like the deal you've been wanting for a long time. Everyone knows that expert professional flippers, like Tarek and Christina El Moussa from HGTV's reality home flipping show, Fix or Flop, are able to make a typical profit of forty to fifty thousand dollars in their rehab business. Naturally, you also understand that their success are due to the fact that they're industry experts, are knowledgeable in hard money loans, they know the market quite well and in addition, they are good at working an auction to purchase their properties at an appropriate deal. Still, your rehab and remodeling skills aren't bad either — in any case, you've already located the right licensed contractor to handle this project.
But where do real estate investors obtain capital? A typical lender, for instance a bank, takes at a minimum one to two months to authorize the financing and deliver the money. Given that home owners favor a fast closing, it may be advisable to start searching for additional financing options.
With banks introducing harder loan standards in the last few years, it is more challenging for a self-employed individual to find a home loan, especially if his credit rating is not flawless. So will a lack of funding prevent you from sticking with your dream? By no means, considering that you can always go the Henry hard money loan route to pay for your flipping project.
A hard money home loan in Henry gives you what is deemed imperative to many real estate deals — a fast closing of just a 2-3 weeks and oftentimes less. Additionally, loan amounts can be made up to 70% loan-to-value of the "as is" property value, as established by a professional appraiser. At first, hard money real estate loans, with starting lending rates of 10%, seem to be costlier than bank loans. But the lengths of these loans are comparatively shorter, making the rate far less important. As it pertains to short-term loans of a few years or less, you should look at them much like you would other expenditures for your project. Right after you rehab and sell off the property, recovering this expense is no different than recuperating the expense for home appliances you put in the house.
What's more, it isn't difficult to obtain a hard money mortgage, regardless if your credit situation is not that impressive. Instead of focusing entirely on the applicant's credit score or source of income, Henry hard money lenders, who may be a privately owned company or an individual, approve a loan after evaluating the property value, its marketability, where it is located, and the odds of getting back their money in case of foreclosure. Adding to this, if the individual can demonstrate past experience in similar real estate ventures, can place down cash for the down payment, and the cost of comparable properties in the vicinity works in his favor, he will have an excellent likelihood of being approved for a hard money real estate loan.
Locating a hard money lender in Henry to fund your real estate project is not very hard, as long as the opportunity that lies ahead of you is promising and boasts a good potential for returns. Submit the form or get in touch with us via phone to talk about the property or properties you have in mind.
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