Hard Money Loans in Irmo
Imagine you've encountered this excellent deal for a fix and flip property in a great neighborhood, and you happen to be either a seasoned real estate investor or a newbie who wants to try his hand at flipping. Everybody knows that capable professional flippers, along the lines of Tarek and Christina El Moussa who star in HGTV's reality flipping program, Fix or Flop, are able to generate an average profit margin of $40,000 to $50,000 on their flips. No need to explain that their rehabbing experience, knowledge of hard money loans, expertise in their housing market, and auction skills have played a significant role in their results. Nonetheless, your rehab and renovation skills aren't bad either — aside from that, you've already found the right contractor to tackle the home.
But where do you get the needed capital for flipping? In the event you get in touch with a common lending institution, such as a bank for funding, it can take a minimum of 4-8 weeks for your acceptance to come through and the funds to be sent out. Because most sellers give preference to a fast closing, you might need to start seeking out other financing alternatives.
Furthermore, in case you have an unfavorable credit rating or do not have a routine source of income, it may be harder for you to obtain a bank loan, considering the tighter loan requirements banks have introduced in recent times. So do you have to give up and abandon your dream to venture into fix and flips? Absolutely not, given that you also have the Irmo hard money loan option.
A hard money home loan in Irmo promises what's perhaps most crucial to real estate investors — a very fast closing in as little as fourteen days. Additionally, financing can be made up to 70% loan-to-value of the as-is property's valuation, as calculated by a professional appraiser. With interest rates starting off around 10%, hard money real estate loans may seem, initially, to be more expensive as compared with conventional bank loans. But if you understand these are not long-term mortgage loans, the rate of interest can be misleading. The cost of such short-term loans should be evaluated much like every other cost that you would have to meet pertaining to the project. Right after you fix up and sell off the property, recuperating this expense is the same as recovering the one for new kitchen appliances you put in the home.
Furthermore, even a person with low credit can still qualify for a hard money mortgage. Instead of focusing solely on the borrower's credit score or income, Irmo hard money lenders, who could be a private company or an individual, authorize a loan after analyzing the home value, ease of marketability, where it is located, and the probability of getting back their money in the event of foreclosure. How much money an applicant can put down beforehand for the property or home, his past real estate experience, and selling price of equivalent homes in the same area are other factors that go into determining a person's suitability for a hard money real estate loan.
Searching for a hard money lender in Irmo to fund your renovation project is not difficult, provided that the opportunity before you is promising and offers the right potential for returns. Enter your info into the contact form or get in touch with us via phone and let's talk about the property or properties you have in mind.
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