Hard Money Loans in Johnson
A remarkable deal on a fix and flip opportunity located in a good subdivision suddenly shows up — seems so good that it's hard to believe. Professional house flippers, like the young couple on Flip or Flop, HGTV's reality flipping series, are capable of earning a profit of forty to fifty grand on the majority of projects. And sure, they are helped in a major way due to their professional knowledge, auction expertise and knowledge of hard money loans. That said, you have also been cultivating your rehab and renovation knowledge, have got a building contractor lined up and are positive that you can do an impressive job on this house.
But money is often a separate issue altogether. For those who approach a regular lending institution, much like a bank for financing, it's very likely going to take, at a minimum, thirty to sixty days for the approval to come through and the money to be sent out. Because most home owners would rather have a fast closing, you might want to begin searching for some other funding options.
To add to it, banks have already been tightening up their lending criteria in recent years, which makes it difficult for someone to receive a regular loan if their credit situation is not perfect or he does not possess a regular salaried profession. So does that leave you with no other option, but to abandon your dream of getting into flipping? Certainly not, on the grounds that you could always go the Johnson hard money loan route to pay for your home flipping project.
A hard money home loan in Johnson provides you with what is possibly most sought after by real estate investors — a quick closing time of as little as two weeks. In addition, the LTV value can reach up to 70% of the home's valuation, as determined by a credentialed appraiser. With the loan rates starting off near 10%, hard money real estate loans may seem, at first, to be higher priced as compared with traditional bank lending products. But in reality, the lending rate isn't as relevant for these loans, since they will never be long-term financing. The price of such short-term loans should be viewed on par with any other cost that you might encounter during the project. When you have turned the home and have made a successful return, you can get back this expense from the property — similar to recuperating the money necessary for the brand-new home appliances that you've installed.
Furthermore, even individuals with low credit can easily qualify for a hard money mortgage. The person's credit score is not the single deciding factor for Johnson hard money lenders — in addition, they look at the home, what is it valued at, where it is located, and its capacity to return their investment if things should not work out as planned. Other criteria that impact a person's acceptance for a hard money real estate loan can include the amount he is in a position to put towards a down payment, his former experience as a real estate investor, and selling price of comparable, just recently sold properties nearby.
So should you come across a very good and profitable investment opportunity, be assured you'll have a hard money lender in Johnson, ready to lend you the cash you need. Submit the form on this page or give us a call and let's discuss the project you have in mind.
A loan specialist will be in touch shortly