Hard Money Loans in Houghton
There's this outstanding opportunity to rehab and flip this nice outdated condo in a good location and it looks a lot like the deal you've been wanting for quite some time. Professional residential home flippers, much like the young couple on Flip or Flop, HGTV's reality flipping show, are capable of bringing in a gain of forty to fifty grand on the majority of projects. And indeed, they are aided in a big way via their professional know-how, auction abilities and knowledge of hard money loans. However, you are convinced that your impressive rehab and renovation knowledge will enable you to do a great job on the property — furthermore, you already have lined up one of the most sought after general contractors in the business to work on this job.
But how do you find the necessary financing for home flipping? For those who get in touch with a common lending institution, such as a bank for a loan, it is more than likely going to take, at a minimum, four to eight weeks for the acceptance to come through and your money to be furnished. With all the sellers looking for a fast closing, that does not seem like a good option to you whatsoever.
With banks introducing more challenging loan guidelines in the past several years, it is now more challenging for a self-employed individual to find a home loan, especially when his credit circumstances are not optimal. So does that leave you with no option, but to drop your dream to venture into home flipping? Not at all, especially when Houghton hard money loans can help you realize many amazing things in the real estate market.
A hard money home loan in Houghton provides what's regarded as crucial to most real estate deals — a very fast closing of only a few weeks and oftentimes even less. Plus, the LTV value can reach up to 70% of the property's valuation, as estimated by a certified appraiser. At first, hard money real estate loans, with starting lending rates of 10%, appear to be higher in price than bank financing. But the lengths of these loans are comparatively shorter, making the rate less important. As it pertains to short-term loans of one or two years or even less, you should consider them much like you would other expenses for your project. Right after you remodel and sell off the house, recouping this expense is no different than recovering the cost of the stainless steel appliances you put in the place.
Moreover, even a person with low credit can still qualify for a hard money mortgage. Rather than focusing primarily on the person's credit score or wages, Houghton hard money lenders, who could be a privately owned company or an individual, say yes to a loan as a result of assessing the home value, its marketability, its location, and the possibility of recuperating their money in case they have to foreclose the loan. The amount that an applicant can put upfront towards the property, his real estate experience, and price range of equivalent homes in the same area are other factors that go into ascertaining an applicant's qualification for a hard money real estate loan.
Finding a hard money lender in Houghton to cover expenses for your renovation project is not hard, provided that the opportunity before you is promising and offers a good potential for returns. Fill out the form on this page or give us a call and let's discuss the property you have in mind.
A loan specialist will be in touch shortly