Hard Money Loans in Idaho Falls
You discovered this phenomenal possibility for renovating and flipping this nice out of date condo in a fantastic location and it seems a lot like the one you've been expecting for quite some time. Many people know that skilled professional flippers, such as Tarek and Christina El Moussa who star in HGTV's reality flipping series, Fix or Flop, are able to make an average profit margin of $40,000 to $50,000 on their home projects. Of course, you also are aware that their great results can be attributed to the simple fact that they're professionals, are well versed in hard money loans, they understand the marketplace really well and furthermore, they are good at working an auction for getting an appropriate price. Still, your rehab and renovation skills aren't bad either — in any case, you've already found a good contractor to tackle this home.
But how can you get the needed financing for home flipping? A typical lending institution, for instance a bank, takes at a minimum one to two months to authorize the mortgage and provide the funds. Since most sellers wish to have a fast closing, you might want to start looking for other financing alternatives.
With banks establishing more challenging loan standards in the past several years, it has become more difficult for a self-employed individual to get a home loan, especially when his credit score is not flawless. So will a shortage of financing stop you from pursuing your aspirations? Under no circumstances, particularly while Idaho Falls hard money loans enable you to achieve great things in the real estate market.
When you opt for a hard money home loan in Idaho Falls, you will get what's perhaps most important to real estate transactions throughout the country — a fast closing of about a couple weeks. Furthermore, hard money lenders can do lending up to 70% LTV of the home's valuation, as estimated by a credentialed third-party evaluation. A number of people believe hard money real estate loans to be higher in price than regular loans, considering interest rates of such loans often start at 10%. But usually, the rate of interest is not as pertinent for these loans, simply because they aren't long-term loans. As it pertains to short-term loans of a handful of years or even less, you should think about them much like you would other expenses for your project. And once you've finally flipped the house, recuperating this expense is comparable to recuperating the expense for the bathroom improvements you performed.
Also, it isn't difficult to obtain a hard money mortgage, regardless if your credit score is not that extraordinary. The customer's credit score will not be the primary deciding factor for Idaho Falls hard money lenders — additionally, they evaluate the property, its market valuation, where it is located, and its ability to earn back their investment if things do not work out as planned. Other criteria that affect an applicant's acceptance for a hard money real estate loan can include how much he is in a position to put towards a down payment, his past experience being a real estate investor, and price of comparative, recently sold properties in the neighborhood.
So should you run into a good and profitable investment opportunity, feel comfortable knowing you'll have a hard money lender in Idaho Falls, willing to loan you the money you need. Submit the form or give us a call to talk about the project you have in mind.
A loan specialist will be in touch shortly