Hard Money Loans in Indian Head Park
A remarkable buy on a fix and flip property in a nice neighborhood shows up out of the blue — sounds too good to be true. Everybody knows that capable professional flippers, such as Tarek and Christina El Moussa who do HGTV's reality home flipping series, Fix or Flop, are able to turn an average profit margin of $40,000 to $50,000 in their rehab business. And sure, they are aided in a big way as a result of their professional knowledge, auction expertise and understanding of hard money loans. On the other hand, you're assured that your superb rehab and remodeling skills can help you do a superb job on this home — in addition, you have already arranged to have one of the most sought after contractors in the area to handle this project.
But financing is often a separate problem entirely. Should you meet with a standard lender, much like a bank for a loan, it's very likely going to take, at a minimum, four to eight weeks for the approval to come through and the money to be distributed. Thus if you are anticipating a fast closing, you have to be aware that this will set you back by a couple of weeks, causing you to miss out on the home.
With banks introducing more challenging loan criteria in the past several years, it is more difficult for a self-employed individual to find a mortgage loan, particularly if his credit rating is not optimal. So will a lack of financing stop you from following your ambitions? Certainly not, due to the fact you could always go the Indian Head Park hard money loan route to finance your home renovating project.
If you apply for a hard money home loan in Indian Head Park, you have access to what is perhaps most essential to real estate offers across the country — a very fast closing of approximately 14 days. Furthermore, hard money lenders can approve lending up to 70% LTV of the property's valuation, as determined by a credentialed third-party appraiser. At first glance, hard money real estate loans, with starting interest rates of 10%, could be seen as more expensive than bank financing. But when you consider these are not long-term mortgage loans, the interest rate can be misleading. Short-term loans of a couple months to a few years are best approached in terms of cost of capital, the same as all other costs in connection with a project. When you have sold the property and have made a positive return, you're able to recover this expense from the house — the same as recuperating the cost of brand-new kitchen appliances that you've installed.
Apart from this, hard money mortgages are easy qualifying, even if you have bad credit. Indian Head Park hard money lenders do not authorize a loan exclusively according to the borrower's credit score — rather they also analyze the property or home, its location and value, and the home's ability to pay back the financing independent of the borrower. Other factors that impact an individual's eligibility for a hard money real estate loan can include how much he is in a position to put towards a down payment, his former experience being a real estate investor, and price of comparable, fairly recently sold homes nearby.
So in the event you run into an outstanding and worthwhile flipping opportunity, be assured you'll have a hard money lender in Indian Head Park, able to loan you the capital you'll need. Complete the contact form on this page or call us and let's discuss the property you have in mind.
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