Hard Money Loans in Kaneohe
Suppose that you've encountered this excellent bargain for a fix and flip property in a great location, and you happen to be either a seasoned real estate investor or a first-timer who wants to try out flipping homes. Expert residential home flippers, similar to the young married couple on Flip or Flop, HGTV's reality flipping program, are capable of bringing in a gain of $40-$50k on the majority of projects. And sure, they are aided in a big way via their professional knowledge, auction expertise and knowledge of hard money loans. On the other hand, you are certain that your superb rehab and renovation skills will enable you to do a superb job on the house — furthermore, you have already lined up one of the best general contractors in town to take care of the job.
But money is a different issue altogether. When you opt for a regular loan from the bank, you will need to wait somewhere around one to two months up until the time the mortgage is approved and the funds are ready to go. So if you are wishing for a fast closing, you have to understand or know that this may cost you a couple weeks, causing you to miss out on the sale.
With banks establishing more challenging loan requirements in the past several years, it is more difficult for a self-employed person to get a home loan, particularly if his credit situation is not optimal. So does that mean you have no option, but to abandon your ambition to venture into home renovating? Absolutely not, seeing as you always have the Kaneohe hard money loan alternative.
If you decide to get a hard money home loan in Kaneohe, you will get what's perhaps most important to real estate transactions throughout the country — a very fast closing of around 14 days. Additionally, financing is made up to 70% loan-to-value of the as-is value, as deemed by a qualified appraiser. With rates starting around 10%, hard money real estate loans may seem, initially, to be more costly when compared with conventional bank lending products. But the lengths of these loans are quite short, which makes the rate less significant. Short-term loans of a couple of months to a few years are best understood in terms of cost of capital, much like any other financial outlay related to a project. And as soon as you have finally flipped the home, recuperating this expense is the exact same as recuperating the expense for the kitchen and bath upgrades you performed.
In addition, even individuals with poor credit can easily qualify for a hard money mortgage. The customer's credit score is not the primary deciding factor for Kaneohe hard money lenders — additionally, they consider the property, its market valuation, where it is located, and its ability to return their financial commitment if things do not go as intended. Additional criteria that influence a customer's acceptance for a hard money real estate loan include what amount of money he is in a position to put towards a down payment, his prior experience as a real estate investor, and selling price of comparable, just recently sold properties in the area.
So in case you have stumbled on a wonderful real estate opportunity with a significant prospect of returns, you've also discovered a hard money lender in Kaneohe that is willing to fund your rehab projects. Complete the contact form or call us to discuss the property or properties you have in mind.
A loan specialist will be in touch shortly