Hard Money Loans in Huntington
Suppose that you've run across this excellent bargain for a fix and flip property you found in a terrific location, and you happen to be either a skilled real estate investor or a newbie who hopes to try out flipping houses. Everybody knows that knowledgeable professional flippers, like Tarek and Christina El Moussa who do HGTV's reality home flipping program, Fix or Flop, can readily make a typical profit of $40,000 to $50,000 in their rehab business. It's fair to say their past experiences rehabbing, knowledge of hard money loans, expertise in their housing market, and auction talents have been major factors to their results. That said, you've also been brushing up your rehab and renovation knowledge, have a contractor ready to go and are positive that you're capable of doing an impressive job on this home.
But how can real estate investors obtain capital? A conventional lending institution, say for example a bank, takes at a minimum 1-2 months to authorize the financing and hand over the cash. Because most home owners would rather have a fast closing, you might need to start looking for some other financing options.
To add to it, banks have already been tightening up their lending standards as of late, making it challenging for someone to obtain a regular home loan if their credit rating is not flawless or he doesn't have a consistent salaried occupation. So does that mean you are without an option, but to abandon your aspiration to venture into flipping? Absolutely not, given that you also have the Huntington hard money loan option.
A hard money home loan in Huntington gives you what's viewed as vital to most real estate transactions — a very fast closing of just a few weeks and at times even less. Also, hard money lenders can do loans up to 70% LTV of the home value, as estimated by a credentialed third-party evaluator. Some people consider hard money real estate loans to be more pricey than ordinary loans, because the interest rates of such loans usually start at 10%. But when you understand these are not long-term mortgage loans, the rate may be misleading. As it pertains to short-term loans of one or two years or less, you should look at them identical to any other expenditure for your project. Right after you remodel and resell the property, recouping this expense is the same as recovering the one for home appliances you placed into the house.
Additionally, it isn't difficult to be eligible for a hard money mortgage, even when your credit situation is not that impressive. As an alternative for focusing entirely on the person's credit score or wages, Huntington hard money lenders, who can be a privately owned company or an individual, say yes to a loan after analyzing the home value, ease of marketability, its location, and the likelihood of recuperating their capital if they have to foreclose the loan. Additional variables that have an impact on an applicant's approval for a hard money real estate loan can include the amount he can put towards a down payment, his prior experience being a real estate investor, and selling price of similar, just recently sold properties nearby.
Locating a hard money lender in Huntington to finance your real estate project is not very challenging, as long as the opportunity that lies ahead of you is promising and has a strong potential for returns. Submit the form on this page or call us and let's discuss your property.
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