Hard Money Loans in Kalkaska
A remarkable buy on a fix and flip opportunity located in a nice subdivision suddenly shows up — seems too good to be true. You may have heard that veteran home flippers, such as the couple on HGTV's Flip or Flop, enjoy an impressive average profit margin close to forty to fifty thousand dollars. Undoubtedly, you also recognize that their great results are attributed to the simple fact that they are experts, are well versed in hard money loans, they know market trends really well and furthermore, they are good at working an auction to buy their houses at an appropriate price. Having said that, you have also been cultivating your rehab and remodeling knowledge, have a general contractor lined up and are positive that you can do a great job on this house.
But capital is a different question entirely. If you get in touch with a regular lender, much like a bank for a mortgage loan, it is more than likely going to take no less than 30-60 days for your approval to come through and the money to be distributed. So if you are looking for a fast closing, you have to recognize that this could cost you a couple weeks, causing you to lose out on the house.
On top of this, banks have already been tightening their lending standards in recent times, rendering it more hard for people to get an ordinary home loan if their credit circumstances are not perfect or he is lacking a regular salaried occupation. So do you have to stop trying and abandon your aspiration to embark into fix and flips? Definitely not, because you also have the Kalkaska hard money loan option.
A hard money home loan in Kalkaska boasts what is perhaps most desired by real estate investors — a very fast closing time of as little as a few weeks. Further, financing can be done for up to 70% loan-to-value of the as-is property value, as established by a licensed appraiser. At first glance, hard money real estate loans, with starting interest rates of 10%, could be seen as higher priced than bank lending products. But usually, the lending rate isn't as relevant for these loans, given that they aren't long-term loans. Short-term loans of several months to a handful of years are best thought of as cost of capital, much like every other expenditure in connection with a project. And when you've finally turned the property or home, recouping this expense is comparable to recovering the expense for the bathroom upgrades you did.
Apart from this, hard money mortgages are not hard to qualify for, even if you have got a bad credit score. Kalkaska hard money lenders don't authorize a loan exclusively based on the customer's credit score — rather they will analyze the home, where it is located and what it is worth, and the home's capacity to pay back the loan without the help of the person. The total amount that a person can put down beforehand for the property or home, how much experience he has in real estate investments, and selling price of equivalent homes in the same area are additional factors that go into ascertaining an applicant's suitability for a hard money real estate loan.
So any time you run into an outstanding and lucrative investment opportunity, rest assured you will have a hard money lender in Kalkaska, in a position to loan you the money that you need. Complete the contact form on this page or give us a call and let's talk about your project.
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