Hard Money Loans in Kaneohe Station
An outstanding deal on a fix and flip property located in a very good subdivision suddenly turns up — sounds too good to be true. You've heard that professional property flippers, like the married couple on HGTV's Flip or Flop, enjoy an impressive average return of around $40,000 – $50,000. Naturally, you also are aware that their results can be attributed to the simple fact that they're experts, are proficient in hard money loans, they know the market really well and they also are good at working an auction to buy their houses at a good deal. Having said that, you have likewise been developing your rehab and remodeling knowledge, have got a contractor lined up and are certain that you can do a great job for this house.
But financing is usually a separate issue entirely. When you approach a customary lending institution, such as a bank for funding, it is more than likely going to take, at the very least, 30-60 days for the acceptance to come through and the money to be sent out. With the home owners seeking a fast closing, that doesn't seem like a good option to you whatsoever.
With banks adding tougher loan guidelines in the past few years, it's become more difficult for a self-employed individual to find a mortgage loan, especially if his credit rating is not optimal. So does that leave you with no option, but to drop your dream to venture into home renovating? By no means, considering that you could always go the Kaneohe Station hard money loan route to finance your home flipping project.
A hard money home loan in Kaneohe Station promises what's perhaps most important to real estate investors — a fast closing time period of as little as fourteen days. Also, hard money lenders are able to do funding up to 70% LTV of the property or home's valuation, as determined by a professional third-party evaluation. Some people regard hard money real estate loans to be higher in price than standard financing, because the interest rates for such loans usually start out at 10%. But in reality, the rate of interest is not as relevant for these loans, because they are not long-term loans. When it comes to short-term loans of a few years or even less, you should look at them just like you would other expenditures for your project. When you have sold the house and have made a successful financial gain, you'll be able to reclaim this expense from the home — similar to recovering the cost of brand-new appliances for the kitchen that you have put in.
Apart from this, hard money mortgages are easy qualifying, even in the event you have poor credit. Kaneohe Station hard money lenders don't authorize a loan strictly based on the borrower's credit score — instead they additionally assess the home, its location and value, and the property's capacity to pay back the financing independent of the borrower. On top of this, if the person have proven experience in similar real estate projects, can place down cash for a down payment, and the cost of comparative properties in the vicinity works in his favor, he has a very good shot of being eligible for a hard money real estate loan.
So if you have stumbled on a wonderful real estate opportunity with a high potential for returns, you've also stumbled upon a hard money lender in Kaneohe Station who's prepared to finance your rehab project. Fill out the contact form or give us a call and let's discuss your property or properties.
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