Hard Money Loans in Junction
Imagine you've run across this really great bargain on a fix and flip property located in an ideal location, and you happen to be either a seasoned real estate investor or a first-timer who wants to try out flipping homes. Everybody knows that expert professional flippers, such as Tarek and Christina El Moussa from HGTV's reality flipping series, Fix or Flop, can make a typical profit margin of $40,000 to $50,000 when they rehab properties. No need to explain that their past experiences rehabbing, understanding of hard money loans, expertise in their market, and auction skills have had an important role in their results. Nonetheless, your rehab and remodeling skills aren't that bad either — in any case, you've already identified the right general contractor to start this job.
But how can you get the needed financing for flipping? A conventional lender, say for example a bank, takes at least one to two months to approve the financing and hand over the cash. Considering that the home owners are looking for a fast closing, that does not seem like a good option to you at all.
On top of this, banks have been tightening up their lending criteria as of late, rendering it more tough for people to get an ordinary home loan if their credit circumstances are not perfect or he does not have a regular salaried occupation. So does that leave you with no option, but to give up your aspiration to venture into rehabbing? By no means, considering that you could always go the Junction hard money loan route to fund your home flipping project.
A hard money home loan in Junction gives you what's possibly most crucial to real estate investors — a fast closing in as little as two weeks. Additionally, loans can be done for up to 70% loan-to-value of the "as is" valuation, as established by a licensed appraiser. Some individuals regard hard money real estate loans to be costlier than ordinary loans, since the lending rates for such loans generally start off at 10%. But the lengths of these loans are quite short, which makes the interest rate much less significant. The price of such short-term loans ought to be considered much like any other expense that you might encounter during the project. When you have turned the property or home and have made a good profit, you're able to recover this expense from the house — the same as recovering the money necessary for the brand-new kitchen appliances that you have installed.
Aside from that, hard money mortgages are not difficult to qualify for, whether or not you posses a bad credit score. Junction hard money lenders do not take on a loan strictly judging by the customer's credit score — rather they additionally look at the property or home, where it is located and how much it is worth, and the home's capability to pay back the loan without the assistance of the applicant. The total amount that a person can put down beforehand for the property, his real estate experience, and price range of equivalent properties in the vicinity are other factors that go into establishing an applicant's qualification for a hard money real estate loan.
So in the event you run into a good and lucrative flipping opportunity, rest assured you'll have a hard money lender in Junction, in a position to lend you the funds you may need. Enter your info into the contact form or call us to discuss the property or properties you have in mind.
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