Hard Money Loans in Independence
Imagine you've stumbled upon this excellent deal for a fix and flip property in a terrific neighborhood, and you happen to be either a seasoned real estate investor or a newbie who is looking to try his hand at flipping. Everyone knows that expert professional flippers, like Tarek and Christina El Moussa who star in HGTV's reality flipping series, Fix or Flop, can make an average profit margin of forty to fifty thousand dollars on their flips. And without a doubt, they are aided in a major way as a result of their professional experience, auction skills and familiarity with hard money loans. However, you're certain that your first class rehab and renovation talents will enable you to do a superb job on the house — what's more, you already have arranged to have one of the finest general contractors in the area to work on the job.
But money can be a separate issue altogether. Should you apply for a traditional bank loan, you will need to wait around roughly 30-60 days up until the time the financing is authorized and your money is accessible. Thus if you happen to be hoping for a fast closing, it's important for you to be aware that this could set you back by a few weeks, making you lose out on the opportunity.
With banks bringing in more challenging loan requirements in recent times, it has become harder for a self-employed person to obtain a mortgage loan, especially when his credit circumstances are not perfect. So do you have to admit defeat and abandon your aspiration to venture off into fix and flips? Certainly not, due to the fact you can always go the Independence hard money loan route to fund your home renovating project.
A hard money home loan in Independence offers you what's viewed as vital to many real estate sales — a very fast closing of just a couple of weeks and more often than not even less. What's more, the LTV value can reach up to 70% of the home's valuation, as estimated by a competent appraiser. At first, hard money real estate loans, with starting lending rates of 10%, appear to be higher in price than bank lending options. But once you appreciate that these loans are not long-term home loans, the rate can be misleading. Short-term loans of several months to a few years are best approached in terms of cost of capital, the same as all other expenses related to a project. After you remodel and resell the house, recouping this expense is the same as recouping the one for stainless steel appliances you placed into the place.
Also, it is easy to qualify for a hard money mortgage, even in the event your credit score is not that impressive. The customer's credit score will not be the primary determining factor for Independence hard money lenders — in addition, they evaluate the property, how much it is worth, its location, and its capacity to earn back their investment if things should not work out as planned. How much an applicant can put down in advance for the house, his real estate experience, and price range of comparable homes in the vicinity are additional factors that go into ascertaining a person's qualification for a hard money real estate loan.
If you happen to have stumbled upon a really great fixer-upper with a significant chance of returns, you have also discovered a hard money lender in Independence that is ready to fund your rehab ventures. Fill out the form or call us and let's talk about your project.
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