Hard Money Loans in Jeffersonville
A fabulous buy on a fix and flip opportunity in a very good neighborhood all of a sudden shows up — sounds too good to be true. You've heard that veteran home flippers, much like the married couple on HGTV's Flip or Flop, enjoy an impressive average return close to $40,000 – $50,000. And indeed, they are aided in a big way via their professional knowledge, auction skills and familiarity with hard money loans. Having said that, you've also been developing your rehab and remodeling skills, have a very good building contractor ready to go and are confident that you will be able to do a stellar job for this property.
But where can you find the necessary financing for home flipping? A standard lending institution, say for example a bank, takes no less than 1 to 2 months to consent to the financing and deliver the money. So if you happen to be wishing for a fast closing, you must realize that this could set you back by a couple weeks, making you lose out on the home.
Moreover, should you have a less-than-perfect credit situation or do not receive a regular income, it is normally harder to obtain a bank loan, seeing the more stringent loan requirements banks have issued recently. So must you admit defeat and abandon your aspiration to get into real estate? Certainly not, seeing as you always have the Jeffersonville hard money loan alternative.
A hard money home loan in Jeffersonville can provide what's viewed as imperative to most real estate sales — a very fast closing of only a few weeks and sometimes even less. Further, loan amounts can be made up to 70% loan-to-value of the as-is home value, as determined by a qualified appraiser. Some individuals believe hard money real estate loans to be more pricey than ordinary financing, because the lending rates of such loans commonly start at 10%. But if you understand these are not long-term loans, the rate can be misleading. As it pertains to short-term loans of several years or less, you should think of them much like you would other expenditures for your project. Right after you remodel and unload the property, recouping this expense is the same as recouping the money you spent for new kitchen appliances you installed in the property.
Furthermore, even someone with weak credit will be able to qualify for a hard money mortgage. Jeffersonville hard money lenders don't approve a loan strictly on the basis of the applicant's credit score — instead they additionally evaluate the property, its valuation and location, and the property's capacity to pay back the loan independent of the person. Adding to that, if the person can demonstrate prior experience in comparable real estate projects, can put down money towards the down payment, and the price of comparable properties in the area works to his benefit, he has got a really good shot of being eligible to get a hard money real estate loan.
So any time you run into a very good and worthwhile investment opportunity, feel comfortable knowing you will have a hard money lender in Jeffersonville, able to lend you the cash that you need. Enter your info into the contact form on this page or call us to talk about your property.
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