Hard Money Loans in Indianola
Suppose that you've encountered this truly good bargain on a fix and flip property located in a terrific neighborhood, and you are either an experienced real estate investor or a first-timer who wants to try his hand at flipping. Professional home flippers, similar to the young married couple on Flip or Flop, HGTV's reality flipping show, are able to haul in a profit of $40-$50k on average. And yes, they are helped in a major way due to their professional experience, auction abilities and understanding of hard money loans. Having said that, you've likewise been cultivating your rehab and remodeling skills, have a very good general contractor ready for the project and are confident that you will be able to do a stellar job on this house.
But how exactly do real estate investors find funds? When you opt for an ordinary bank loan, you will need to wait around approximately 1 to 2 months up until the time the money is approved and the funding is ready to go. So if you're hoping for a fast closing, it is important to be aware that this will cost you a couple of weeks, causing you to miss out on the opportunity.
With banks adding more challenging loan criteria in the past several years, it is now harder for a self-employed individual to obtain a mortgage loan, especially when his credit score is not perfect. So do you have to stop trying and forego your dream to get into the real estate market? Absolutely not, given that you always have the Indianola hard money loan alternative.
A hard money home loan in Indianola gives you what's probably most crucial to real estate investors — a fast closing time period of as few as two weeks. Plus, the LTV value can reach up to 70% of the property value, as estimated by a competent appraiser. With the loan rates starting around 10%, hard money real estate loans might seem, initially, to be higher in price as compared with traditional bank financing. But the term lengths for these loans tend to be fairly short, which means the rate is less important. As it pertains to short-term loans of 1 or 2 years or less, you should look at them similar to every other expenditure for your project. And as soon as you have turned the property or home, recouping this expense is identical to recouping the expense for the bathroom or other upgrades you performed.
Aside from that, hard money mortgages are easy qualifying, even when you have got below-average credit. Rather than focusing primarily on the borrower's credit score or income, Indianola hard money lenders, who may be a privately owned company or an individual person, approve a loan as a result of evaluating the home value, ease of marketability, where it is located, and the likelihood of recouping their money if they have to foreclose the loan. The total amount that an individual can put down beforehand towards the home, how much experience he has in real estate investments, and selling price of equivalent homes in the vicinity are various other factors that go into establishing an individual's qualification for a hard money real estate loan.
So if you have stumbled upon a wonderful fixer-upper with a huge potential for returns, you've also stumbled upon a hard money lender in Indianola who is prepared to fund your fix and flip venture. Complete the contact form or get in touch with us via phone and let's discuss the property or properties you have in mind.
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