Hard Money Loans in Independence
A fantastic deal on a fix and flip opportunity in a nice subdivision shows up out of the blue — seems so good that it's difficult to believe. Professional residential home flippers, much like the young couple on Flip or Flop, HGTV's reality flipping series, are able to bring in a profit of $40-$50k on a regular basis. Naturally, you also recognize that their success are credited to the fact that they are industry experts, are well versed in hard money loans, they understand the marketplace really well and they also know how to work an auction to purchase their houses at a good price. With that being said, you've likewise been cultivating your rehab and renovation knowledge, have a very good general contractor lined up and are positive that you're capable of doing a bang up job on this property.
But financing is often a different question altogether. Should you opt for a traditional loan from the bank, you will wind up waiting somewhere around 1-2 months before the mortgage loan is approved and your funding is readily available. So if you will be hoping for a fast closing, you need to realize that this may set you back by a couple weeks, causing you to lose out on the house.
As well as this, in case you have a sub-optimal credit score or don't have a regular source of income, it is usually harder for you to be eligible for a bank financing, seeing the stricter loan guidelines banks have issued in recent times. So does that leave you with no other option, but to abandon your ambition to venture into home renovating? Certainly not, considering that you can always use the Independence hard money loan approach to pay for your rehab project.
A hard money home loan in Independence gives you what's possibly most crucial to real estate investors — a quick closing time period of as little as fourteen days. Plus, the LTV value can reach up to 70% of the home value, as determined by a certified appraiser. With loan rates starting off at about 10%, hard money real estate loans might appear, at first glance, to be more costly in comparison with traditional bank lending products. But usually, the interest rate is not as relevant for these loans, because they aren't long-term financing. The price of such short-term loans should be looked at much like any other financial outlay that you will encounter in the course of the project. After you rehab and sell off the home, recuperating this expense is no different than recuperating the money you spent for home appliances you put in the house.
In addition, even a person with bad credit can still qualify for a hard money mortgage. The person's credit score is not the exclusive determining factor for Independence hard money lenders — additionally, they look at the home, its market value, its location, and its capacity to earn back their investment if everything does not go as planned. Several other factors that impact a customer's approval for a hard money real estate loan can include the amount he is in a position to put towards a down payment, his previous experience as a real estate investor, and price range of comparable, recently sold properties nearby.
Searching for a hard money lender in Independence to help with expenses for your fix and flip endeavor is not difficult, provided that the opportunity before you is promising and has a strong potential for returns. Submit the contact form or get in touch with us via phone and let's talk about your property or properties.
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