Hard Money Loans in Indiana
Suppose that you've come across this truly good bargain for a fix and flip property in a great location, and you happen to be either a skilled real estate investor or a newbie who hopes to try his hand at flipping. You've heard that competent property flippers, much like the married couple on HGTV's Flip or Flop, have an impressive average profit margin close to forty to fifty thousand dollars. No need to explain that their past experiences rehabbing, understanding of hard money loans, familiarity with the market, and auction talents have been major factors to their successes. However, you're assured that your superb rehab and renovation abilities will help you do an outstanding job for this house — in addition, you have already arranged to have one of the finest general contractors in the business to take care of the job.
But how exactly can real estate investors find funding? If you opt for a conventional loan via a bank, you will have to wait around roughly 30-60 days up until the time the loan is approved and your funds are accessible. Given that home owners give preference to a fast closing, it may be best to begin looking for additional financing alternatives.
To add to it, banks have already been tightening their lending requirements in recent times, making it challenging for someone to get an ordinary loan if their credit rating is not perfect or he does not have a regular salaried job. So do you have to give up and abandon your ambition to venture into the real estate market? By no means, especially while Indiana hard money loans will assist you to realize great things in the real estate market.
A hard money home loan in Indiana boasts what's possibly most important to real estate investors — a fast closing time of as little as two weeks. Also, hard money lenders can approve funding up to 70% LTV of the property's valuation, as established by a licensed third-party appraiser. With lending rates starting out around 10%, hard money real estate loans may look, initially, to be more costly as compared with conventional bank loans. But when you appreciate that these are not long-term home loans, the interest rate can be misleading. As it pertains to short-term loans of a few years or even less, you should think of them identical to every other expenditure for the project. Right after you rehab and sell off the property, recouping this expense is the same as recuperating the one for home appliances you put in the house.
Apart from this, hard money mortgages are not difficult to qualify for, even if you have a weak credit score. As an alternative for focusing exclusively on the applicant's credit score or income, Indiana hard money lenders, who may be a private company or an individual person, authorize a loan after assessing the property value, ease of marketability, where it is located, and the odds of getting back their money if they have to foreclose the loan. On top of that, if the applicant can demonstrate prior experience in equivalent real estate projects, can place down money towards a down payment, and the price of comparative houses in the neighborhood works in his favor, he has a really good chance of being approved to obtain a hard money real estate loan.
So any time you come across a good and profitable flipping opportunity, feel comfortable knowing you'll have a hard money lender in Indiana, ready to lend you the cash you need. Fill out the contact form or call us to discuss your project.
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