Hard Money Loans in Howe
An outstanding deal on a fix and flip property located in a nice subdivision suddenly turns up — seems so good that it's hard to believe. Professional home flippers, like the young couple on Flip or Flop, HGTV's reality flipping series, are able to earn a gain of $40-$50k as an average on multiple occasions. It goes without saying their past experiences rehabbing, understanding of hard money loans, familiarity with the market, and auction skills have had an important role in their results. On the other hand, you're convinced that your impressive rehab and renovation skills will help you do a quality job for this project — furthermore, you already have lined up one of the premier contractors in the area to take care of the project.
But how do you get the needed financing for flipping? A typical lender, like for example a bank, takes at the very least 1 to 2 months to consent to the financing and deliver the capital. Thus if you happen to be expecting a fast closing, it is important to understand that this could set you back by a few weeks, causing you to lose out on the home.
Moreover, if you have a sub-optimal credit rating or don't have a routine source of income, it is normally more difficult to be eligible for a bank financing, considering the more stringent loan criteria banks have issued recently. So do you have to give up and forego your desire to venture off into real estate? Definitely not, because you also have the Howe hard money loan option.
A hard money home loan in Howe boasts what is perhaps most important to real estate investors — a quick closing in as little as fourteen days. Further, loan amounts are made up to 70% loan-to-value of the as-is valuation, as determined by a licensed appraiser. A number of people believe hard money real estate loans to be higher in price than ordinary financing, since the interest rates for such loans commonly start out at 10%. But if you consider these are not long-term mortgage loans, the rate can be misleading. Short-term loans of several months to a few years are best understood in terms of cost of capital, similar to any other expense in connection with a project. And when you've finally flipped the home, recovering this expense is comparable to recuperating the expense for the bathroom or other upgrades you did.
What's more, it is easy to be eligible for a hard money mortgage, regardless of whether your credit score is not that superb. Howe hard money lenders don't approve a loan exclusively judging by the person's credit score — instead they additionally look at the home, its location and value, and the property's ability to pay back the loan without the assistance of the person. The total amount that a borrower can put down beforehand towards the property or home, how much experience he has in real estate investing, and selling price of comparable properties in the neighborhood are other factors that go into analyzing an individual's suitability for a hard money real estate loan.
So should you run into a very good and profitable investment opportunity, rest assured you'll have a hard money lender in Howe, willing to lend you the money that you need. Complete the form on this page or give us a call to talk about the property or properties you have in mind.
A loan specialist will be in touch shortly