Hard Money Loans in Indianapolis
There's this outstanding opportunity to renovate and flip this nice old home in a good part of town and it looks like the one you have been anticipating for quite a while. You may have heard that competent house flippers, like the couple on HGTV's Flip or Flop, turn a remarkable average profit margin of around $40,000 – $50,000. It goes without saying their past experiences rehabbing, knowledge of hard money loans, familiarity with the market, and auction talents have been large factors to their successes. Still, your rehab and renovation knowledge isn't bad either — in any case, you have already identified a good building contractor to handle this project.
But how do you find the necessary funding for home flipping? A typical lending institution, say for example a bank, takes at least one to two months to authorize the loan and provide the funds. Considering that all the sellers are seeking a fast closing, that doesn't appear like a wise idea to you in the slightest.
On top of this, banks have been tightening their lending standards in recent times, rendering it more difficult for a person to get a regular loan if their credit situation is not flawless or he doesn't have a regular salaried job. So will a shortage of funds keep you from pursuing your aspirations? Not at all, especially when Indianapolis hard money loans will assist you to accomplish many amazing things in the real estate world.
When you obtain a hard money home loan in Indianapolis, you will get what is perhaps most vital to real estate transactions throughout the country — a quick closing of around 2 weeks. Additionally, loans are made up to 70% loan-to-value of the as-is property value, as deemed by a professional appraiser. Some people believe hard money real estate loans to be higher in price than customary loans, considering interest rates for such loans commonly start out at 10%. But once you appreciate that these are not long-term home loans, the interest rate may be misleading. When it comes to short-term loans of a handful of years or less, you should think of them the same as you might for every other expense for the project. And as soon as you have flipped the house, recovering this expense is comparable to recovering the expense for all the kitchen and bath updates you performed.
Moreover, even individuals with weak credit can still be eligible for a hard money mortgage. Instead of focusing strictly on the borrower's credit score or net income, Indianapolis hard money lenders, who could be a private company or an individual, authorize a loan after evaluating the home value, ease of marketability, where it is located, and the odds of recouping their money in case of foreclosure. Other criteria that have an impact on a customer's approval for a hard money real estate loan can include how much money he is in a position to put towards a down payment, his past experience being a real estate investor, and price range of similar, recently sold residences in the vicinity.
So in the event you run into an outstanding and profitable investment opportunity, be assured you will have a hard money lender in Indianapolis, equipped to loan you the cash you'll need. Complete the form or give us a call to discuss the project you have in mind.
A loan specialist will be in touch shortly