Hard Money Loans in Huntington
A fantastic deal on a fix and flip opportunity located in a good area of the city all of a sudden shows up — seems so good that it's difficult to believe. You've probably heard that veteran home flippers, like the husband and wife on HGTV's Flip or Flop, turn a remarkable average profit margin of around $40,000 – $50,000. Undoubtedly, you also understand that their great results are due to the fact that they are industry experts, are knowledgeable in hard money loans, they know the market really well and additionally, they know how to work a public auction to buy their properties at a reasonable deal. Nonetheless, your rehab and renovation knowledge isn't bad either — besides, you have already located an ideal building contractor to take on the project.
But how exactly do real estate investors obtain funds? A typical lending institution, say for example a bank, takes at the very least 1-2 months to approve the financing and release the capital. Thus if you happen to be wishing for a fast closing, you have to recognize that this will cost you weeks, making you miss out on the home.
As well as this, if you have an unfavorable credit rating or do not receive a routine income source, it is normally tougher for you to be eligible for bank financing, seeing the stricter loan criteria banks have put in place as of late. So will a lack of funds stop you from sticking to your aspirations? By no means, particularly while Huntington hard money loans enable you to achieve great things in real estate.
A hard money home loan in Huntington provides you with what is probably most sought after by real estate investors — a very fast closing in as few as 14 days. Aside from that, financing is made up to 70% loan-to-value of the "as is" house value, as calculated by a licensed appraiser. On the surface, hard money real estate loans, with starting lending rates of 10%, appear to be more pricey than bank lending products. But in reality, the interest rate is not as pertinent for these loans, simply because they aren't long-term loans. Short-term loans of several months to a handful of years are best approached as cost of capital, the same as all other expenses associated with a project. After you fix up and sell the home, recuperating this expense is the same as recuperating the cost of the home appliances you put in the home.
Besides, hard money mortgages are not hard to qualify for, even when you have poor credit. The customer's credit score will not be the primary determining factor for Huntington hard money lenders — in addition, they examine the piece of real estate, its market valuation, where it is located, and its capacity to return their investment if things do not work out as planned. The total amount that an applicant can put upfront for the house, how much experience he has in real estate investing, and selling price of comparable properties in the same area are various other details that go into ascertaining an applicant's qualification for a hard money real estate loan.
Finding a hard money lender in Huntington to finance your renovation project is not very hard, as long as the opportunity before you is promising and possesses the right potential for returns. Complete the contact form on this page or get in touch with us via phone to talk about your property.
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