Hard Money Loans in Highland
An outstanding bargain on a fix and flip opportunity located in a good subdivision shows up out of the blue — sounds so good that it's hard to believe. Professional residential home flippers, similar to the young married couple on Flip or Flop, HGTV's reality flipping show, are able to earn a gain of forty to fifty grand for the majority of homes. Of course, you also know that their results are due to the fact that they're industry experts, are proficient in hard money loans, they know market trends really well and in addition, they are good at working a public auction for getting a good deal. Still, your rehab and renovation skills aren't that bad either — besides, you've already located an ideal building contractor to take on this project.
But where precisely do real estate investors find financing? For those who meet with a standard lender, much like a bank for a loan, it can take, at a minimum, 4-8 weeks for your approval to come through and your funds to be dispersed. Thus if you are anticipating a fast closing, you must be aware that this will set you back by a couple of weeks, making you miss out on the home.
With banks establishing tougher loan guidelines in the past several years, it is more challenging for a self-employed individual to find a home loan, particularly if his credit situation is not optimal. So does that mean you have no option, but to give up your ambition to venture into home renovating? Most certainly not, given that you also have the Highland hard money loan alternative.
A hard money home loan in Highland gives you what is possibly most crucial to real estate investors — a quick closing time period of as few as 2 weeks. Additionally, financing can be made up to 70% loan-to-value of the "as is" house value, as determined by a licensed appraiser. Some individuals regard hard money real estate loans to be higher in price than ordinary loans, considering lending rates for these loans usually start out at 10%. But usually, the interest rate isn't as relevant for these loans, given that they are not long-term loans. As it pertains to short-term loans of one or two years or even less, you should think of them identical to any kind of other expense for your project. Once you have sold the property and have made a good return, you can reclaim this expense from the home — the same as recouping the money necessary for the brand-new home appliances that you installed.
What's more, it's easy to be eligible for a hard money mortgage, regardless of whether your credit rating is not that great. Rather than focusing primarily on the borrower's credit score or source of income, Highland hard money lenders, who can be a privately owned company or an individual, say yes to a loan as a result of analyzing the home value, ease of marketability, its location, and the likelihood of recovering their money in case of foreclosure. Other criteria that affect an individual's eligibility for a hard money real estate loan can include what amount of money he is in a position to put into a down payment, his previous experience as a real estate investor, and price of comparable, recently sold homes nearby.
So if you have stumbled on a really good real estate opportunity with a huge chance of returns, you've also discovered a hard money lender in Highland that is prepared to finance your fix and flip venture. Submit the form or give us a call and let's talk about your project.
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