Hard Money Loans in Junction City
Suppose that you've run across this excellent deal on a fix and flip property located in an ideal neighborhood, and you are either a skilled real estate investor or a newbie who is looking to try out flipping homes. Many people know that expert professional flippers, along the lines of Tarek and Christina El Moussa from HGTV's reality flipping program, Fix or Flop, can generate a typical profit of forty to fifty thousand dollars on their home projects. Naturally, you also understand that their results are credited to the fact that they are professionals, are knowledgeable in hard money loans, they know market trends really well and they also are good at working a public auction to buy their houses at a good deal. On the other hand, you are convinced that your superb rehab and renovation skills will assist you to do a quality job on this home — additionally, you've already arranged to have one of the most sought after building contractors in town to work on this project.
But where precisely do real estate investors find money? A standard lending institution, like for example a bank, takes a minimum of 1-2 months to consent to the loan and deliver the capital. Given that sellers give preference to a fast closing, you might need to begin searching for some other financing alternatives.
Furthermore, for those who have a less-than-perfect credit rating or do not have a regular income source, it can be more challenging for you to be eligible for a bank financing, considering the more stringent loan criteria banks have put in place of late. So will inadequate financing prevent you from sticking to your aspirations? By no means, because you can always go the Junction City hard money loan route to finance your home flipping project.
A hard money home loan in Junction City provides what is probably most important to real estate investors — a fast closing in as few as 2 weeks. And additionally, financing can be done for up to 70% loan-to-value of the as-is valuation, as determined by a qualified appraiser. Some people regard hard money real estate loans to be costlier than standard financing, because the lending rates for such loans usually start at 10%. But usually, the lending rate is not as relevant for these loans, given that they are not long-term financing. When it comes to short-term loans of a few years or less, you should consider them the same as you would for any other expenditure for the project. And once you have finally sold the house, recuperating this expense is the exact same as recuperating the expense for all the bathroom or other updates you did.
Furthermore, even someone with poor credit will be able to qualify for a hard money mortgage. Junction City hard money lenders do not approve a loan exclusively based on the customer's credit score — instead they also assess the property, its location and value, and the home's capacity to pay back the financing independent of the applicant. The amount that a person can put down in advance towards the house, how much practical experience he has in real estate investing, and price range of comparative properties in the neighborhood are additional details that go into analyzing a borrower's eligibility for a hard money real estate loan.
Searching for a hard money lender in Junction City to help with expenses for your real estate project is not hard, assuming that the opportunity in front of you is promising and boasts a good prospect for returns. Enter your info into the form on this page or get in touch with us via phone to discuss the project you have in mind.
A loan specialist will be in touch shortly