Hard Money Loans in Hilton Head Island
You discovered this phenomenal opportunity to fix and flip this nice old property or home in a fantastic part of town and it seems a lot like the one you've been expecting for quite a while. Professional house flippers, much like the young couple on Flip or Flop, HGTV's reality flipping series, are capable of earning a gain of $40-$50k on a regular basis. And without a doubt, they are aided in a major way as a result of their professional experience, auction expertise and familiarity with hard money loans. Still, your rehab and renovation knowledge isn't that bad either — in any case, you've already found a good building contractor to start the home.
But how can you obtain the needed capital for flipping? A standard lender, for instance a bank, takes a minimum of 1-2 months to approve the financing and provide the money. With the home owners looking for a fast closing, that doesn't seem like a good option to you whatsoever.
As well as this, should you have a less-than-perfect credit rating or don't receive a regular income, it is normally tougher to be eligible for a a bank loan, seeing the more stringent loan criteria banks have issued in recent times. So will a lack of funds keep you from sticking to your aspirations? By no means, especially while Hilton Head Island hard money loans can help you achieve many amazing things in real estate.
A hard money home loan in Hilton Head Island can provide what is deemed crucial to many real estate sales — a quick closing of just a couple of weeks and more often than not even less. Additionally, loans are made up to 70% loan-to-value of the as-is house's valuation, as deemed by a licensed appraiser. At first, hard money real estate loans, with starting interest rates of 10%, could be seen as more costly than bank lending products. But the term lengths for these loans are much shorter, which makes the rate far less important. Short-term loans of a couple of months to a few years are best approached as cost of capital, much like any other financial outlay related to a project. When you have sold the property or home and have made a positive financial gain, you can reclaim this expense from the property or home — very much like recovering the money spent on the brand-new appliances for the kitchen that you have installed.
Furthermore, even an individual with low credit can still be eligible for a hard money mortgage. Rather than focusing primarily on the borrower's credit score or wages, Hilton Head Island hard money lenders, who can be a privately owned company or an individual person, authorize a loan as a result of examining the home value, its marketability, its location, and the likelihood of getting back their capital in the event of foreclosure. On top of that, if the applicant can demonstrate past experience in similar real estate ventures, can put down money for the down payment, and the price of equivalent properties in the area works in his favor, he will have an excellent likelihood of being approved for a hard money real estate loan.
So should you come across an outstanding and lucrative investment opportunity, be assured you'll have a hard money lender in Hilton Head Island, ready to loan you the cash you will need. Submit the form or get in touch with us via phone to discuss the property you have in mind.
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