Hard Money Loans in Ionia
There is this outstanding opportunity to fix and flip this wonderful outdated home in a good location and it looks like the one you have been looking forward to for quite a while. Professional home flippers, much like the young married couple on Flip or Flop, HGTV's reality flipping program, are capable of bringing in a profit of $40-$50k for most homes. Of course, you also understand that their great results can be credited to the simple fact that they are professionals, are knowledgeable in hard money loans, they understand market trends quite well and they also know how to work a public auction for getting an appropriate deal. With that being said, you've likewise been cultivating your rehab and renovation skills, have got a licensed contractor lined up and are certain that you're capable of doing a bang up job for this property.
But funding is a separate question altogether. A typical lender, say for example a bank, takes at a minimum one to two months to authorize the mortgage and deliver the monies. Since the majority of home owners prefer a fast closing, you may have to begin searching for some other funding options.
What's more, if you have an unfavorable credit rating or don't receive a conventional income source, it may be more challenging for you to be eligible for bank financing, seeing the more stringent loan criteria banks have introduced in recent times. So does this leave you with no option, but to give up your ambition of venturing into rehabbing? Definitely not, given that you always have the Ionia hard money loan alternative.
Should you obtain a hard money home loan in Ionia, you will get what is possibly most important to real estate offers throughout the country — a very fast closing of around 14 days. Plus, the LTV value can go up to 70% of the place's valuation, as estimated by a competent appraiser. With the loan rates starting off near 10%, hard money real estate loans might appear, at first, to be higher priced as compared with traditional bank lending products. But in reality, the lending rate is not as useful a measure for these loans, given that they are not long-term financing. The price tag on such short-term loans should be evaluated on par with every other cost that you would need to meet pertaining to the project. Once you have resold the home and have made a good profit, you'll be able to recover this expense from the house — similar to recuperating the cost of brand-new home appliances that you put in.
Besides, hard money mortgages are easy qualifying, even if you have got less-than-perfect credit. Ionia hard money lenders don't authorize a loan exclusively judging by the customer's credit score — instead they additionally analyze the property, its location and value, and the home's capability to pay back the financing independent of the applicant. The total amount that a person can put upfront for the property, how much experience he has in real estate investments, and selling price of comparable properties in the neighborhood are other details that go into determining a person's qualification for a hard money real estate loan.
So if you have found a really great home to flip with a significant prospect of returns, you have also discovered a hard money lender in Ionia who is willing to provide financing for your fix and flip ventures. Enter your info into the contact form or give us a call and let's discuss the property you have in mind.
A loan specialist will be in touch shortly