Hard Money Loans in Hooper Bay
Suppose you've come across this excellent deal on a fix and flip property located in an ideal location, and you happen to be either a skilled real estate investor or a first-timer who really wants to try his hand at flipping. Expert home flippers, such as the young couple on Flip or Flop, HGTV's reality flipping show, are able to haul in a profit of $40-$50k on most projects. It's fair to say their past experiences rehabbing, understanding of hard money loans, familiarity with the market, and auction skills have been large factors to their success. That said, you have recently been cultivating your rehab and renovation knowledge, have a very good contractor ready to go and are positive that you can do an impressive job for this home.
But how do you obtain the needed funding for home flipping? If you approach a common lending institution, like a bank for financing, it's very likely going to take at least 4-8 weeks for the acceptance to come through and your money to be dispersed. Because most home owners favor a fast closing, you may have to begin looking for some other funding alternatives.
On top of this, banks have already been tightening their lending criteria as of late, which makes it hard for someone to obtain a regular loan if their credit circumstances are not flawless or he does not possess a consistent salaried occupation. So does that mean you have no option, but to drop your dream of getting into the fix and flip business? By no means, especially when Hooper Bay hard money loans will assist you to accomplish great things in real estate.
A hard money home loan in Hooper Bay provides what is considered imperative to many real estate deals — a very fast closing of just a few weeks and sometimes less. Additionally, loan amounts can be made up to 70% loan-to-value of the as-is home's valuation, as determined by a professional appraiser. With interest rates starting off near 10%, hard money real estate loans may seem, initially, to be more costly when compared with traditional bank financing. But when you understand these are not long-term mortgage loans, the interest rate can be misleading. Short-term loans of a couple months to a handful of years are best understood as cost of capital, very much like every other financial outlay in connection with a project. When you have sold the property and have made a positive financial gain, you'll be able to recoup this expense from the property — much like recuperating the cost of brand-new home appliances that you installed.
Aside from that, hard money mortgages are easy qualifying, whether or not you have less-than-perfect credit. Rather than focusing only on the person's credit score or income, Hooper Bay hard money lenders, who can be a privately owned company or an individual, authorize a loan after analyzing the home value, how easy it will be to market, where it is located, and the probability of recovering their money in the event of foreclosure. Several other variables that influence a customer's acceptance for a hard money real estate loan can include the amount he is in a position to put into a down payment, his prior experience being a real estate investor, and price of similar, just recently sold homes in the vicinity.
So should you run into a good and lucrative investment opportunity, relax knowing you'll have a hard money lender in Hooper Bay, willing to loan you the money you'll need. Submit the form or give us a call to talk about your property.
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