Hard Money Loans in Hometown
Suppose you've come across this really great deal for a fix and flip property you found in a great neighborhood, and you're either a skilled real estate investor or a newbie who hopes to try his hand at flipping. You've heard that veteran home flippers, like the couple on HGTV's Flip or Flop, enjoy a remarkable average profit near forty to fifty thousand dollars. It goes without saying their past experiences rehabbing, knowledge of hard money loans, expertise in their market, and auction talents have played a big part in their results. Nevertheless, you're assured that your first class rehab and remodeling abilities can help you do an outstanding job on this house — additionally, you already have arranged to have one of the most sought after building contractors in the business to take care of the job.
But how do real estate investors get funding? In the event you meet with a standard lending institution, much like a bank for financing, it more than likely will take, at a minimum, 4-8 weeks for your approval to be completed and your money to be distributed. With the home owners seeking a fast closing, that does not seem like a great idea to you at all.
To add to it, banks have been tightening up their lending criteria in recent times, which makes it tough for people to receive a typical home loan if their credit circumstances are not perfect or he doesn't have a regular salaried job. So must you admit defeat and abandon your dream to venture into fix and flips? Certainly not, on the grounds that you can always go the Hometown hard money loan route to finance your rehab project.
If you decide to apply for a hard money home loan in Hometown, you'll get what is probably most vital to real estate negotiations across the country — a very fast closing of approximately 14 days. Further, loan amounts are made up to 70% loan-to-value of the "as is" value, as determined by a professional appraiser. At first, hard money real estate loans, with starting lending rates of 10%, could be seen as more pricey than bank lending options. But if you consider these loans are not long-term mortgage loans, the rate of interest can be misleading. When it comes to short-term loans of a handful of years or less, you should consider them the same as you might for any other expense for your project. Right after you fix up and sell off the home, recouping this expense is the same as recovering the one for stainless steel appliances you put in the house.
Moreover, even a person with bad credit can easily qualify for a hard money mortgage. Hometown hard money lenders don't take on a loan exclusively according to the borrower's credit score — instead they additionally look at the property or home, its location and value, and the home's ability to pay back the loan without the help of the person. On top of this, if the applicant have proven experience in comparable real estate endeavors, can place down money for the down payment, and the cost of comparative properties in the area works to his benefit, he has got an excellent chance of being approved to obtain a hard money real estate loan.
So should you come across a good and profitable flipping opportunity, feel comfortable knowing you'll have a hard money lender in Hometown, ready to lend you the capital you need. Complete the contact form on this page or get in touch with us via phone and let's discuss the property or properties you have in mind.
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