Hard Money Loans in Independence
You discovered this amazing possibility for rehabbing and flipping this wonderful outdated property or home in a good area and it seems a lot like the one you have been wanting for a long time. You may have heard that veteran property flippers, like the husband and wife on HGTV's Flip or Flop, have a remarkable average return of around $40,000 – $50,000. Undoubtedly, you also understand that their successes are credited to the simple fact that they're experts, are well versed in hard money loans, they understand market trends really well and they also know how to work an auction to purchase their homes at a reasonable deal. Having said that, you've recently been cultivating your rehab and renovation knowledge, have got a licensed contractor arranged and are confident that you will be able to do an impressive job on this home.
But where precisely do real estate investors obtain financing? A traditional lending institution, like for example a bank, takes at the very least 1-2 months to approve the financing and hand over the capital. Since the majority of sellers would rather have a fast closing, it may be best to begin seeking out some other financing options.
As well as this, if you have a sub-optimal credit situation or don't have a consistent source of income, it usually is tougher for you to be eligible for bank financing, considering the stricter loan criteria banks have introduced of late. So do you have to admit defeat and abandon your ambition to venture into the real estate market? Definitely not, because you also have the Independence hard money loan option.
A hard money home loan in Independence boasts what is probably most sought after by real estate investors — a quick closing in as few as two weeks. Plus, the LTV value can range up to 70% of the place's valuation, as estimated by a competent appraiser. Some people believe hard money real estate loans to be higher in price than standard financing, considering lending rates of such loans usually start out at 10%. But in reality, the rate of interest is not as useful a measure for these loans, simply because they aren't long-term loans. Short-term loans of several months to a few years are best looked at in terms of cost of capital, much like all other expenses involved with a project. After you rehab and resell the house, recouping this expense is the same as recovering the cost of the new kitchen appliances you installed in the house.
Moreover, even someone with weak credit can easily be eligible for a hard money mortgage. The borrower's credit score is not the sole determining factor for Independence hard money lenders — they also examine the home, its market value, where it is located, and its capacity to earn back their financial commitment if things do not go as intended. Adding to this, if the individual have proven experience in comparable real estate ventures, can put down cash towards a down payment, and the price of equivalent homes in the vicinity works to his benefit, he stands a good chance of being approved to obtain a hard money real estate loan.
Searching for a hard money lender in Independence to help with expenses for your real estate project is not very hard, provided that the opportunity in front of you is promising and offers a strong prospect for returns. Submit the contact form on this page or give us a call and let's talk about your property.
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