Hard Money Loans in Idalou
Suppose you've run across this really great bargain on a fix and flip property located in an ideal location, and you're either a seasoned real estate investor or a newbie who is looking to try his hand at flipping. Expert property flippers, much like the young married couple on Flip or Flop, HGTV's reality flipping program, are able to earn a profit of $40-$50k on average. Naturally, you also recognize that their successes can be attributed to the fact that they're experts, are knowledgeable in hard money loans, they know the market quite well and additionally, they know how to work a public auction to buy their houses at a good deal. Nonetheless, your rehab and renovation skills aren't that bad either — aside from that, you have already found the right contractor to start the job.
But how can real estate investors find funding? If you approach a customary lender, much like a bank for a mortgage loan, it's likely going to take no less than 30-60 days for your acceptance to be completed and your funds to be distributed. So if you will be hoping for a fast closing, you need to understand that this may cost you a couple weeks, causing you to lose out on the house.
With banks introducing more challenging loan requirements in the past several years, it is much harder for a self-employed individual to get a home loan, especially if his credit situation is not optimal. So must you give up and forego your ambition to venture into the real estate market? Not at all, especially while Idalou hard money loans will assist you to achieve many amazing things in the real estate market.
A hard money home loan in Idalou promises what's possibly most crucial to real estate investors — a fast closing in as few as 14 days. In addition, the LTV value can reach up to 70% of the home's valuation, as evaluated by a certified appraiser. At first, hard money real estate loans, with starting lending rates of 10%, appear to be costlier than bank lending products. But if you understand these loans are not long-term home loans, the rate tends to be misleading. As it pertains to short-term loans of a few years or even less, you should think of them the same as you might for any other expenditure for the project. After you rehab and unload the house, recuperating this expense is no different than recuperating the expense for new kitchen appliances you installed in the home.
Moreover, even someone with bad credit can easily qualify for a hard money mortgage. Idalou hard money lenders do not approve a loan exclusively according to the person's credit score — rather they also look at the property, its value and location, and the home's capability to pay back the loan independent of the person. Other criteria that influence a borrower's acceptance for a hard money real estate loan include how much money he can put into a down payment, his former experience as a real estate investor, and selling price of comparable, fairly recently sold residences in the neighborhood.
Locating a hard money lender in Idalou to finance your flipping business is not hard, provided that the opportunity before you is promising and has the right prospect for returns. Fill out the contact form on this page or call us to discuss the project you have in mind.
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