Hard Money Loans in Kansas City
You discovered this amazing possibility for renovating and flipping this nice old home in a very good part of town and it looks a lot like the deal you've been expecting for quite some time. You've heard that competent home flippers, similar to the couple on HGTV's Flip or Flop, turn an impressive average profit margin close to $40,000 – $50,000. Undoubtedly, you also recognize that their great results are attributed to the fact that they're industry experts, are proficient in hard money loans, they know the market quite well and furthermore, they know how to work a public auction to buy their homes at a reasonable price. On the other hand, you're certain that your first class rehab and remodeling knowledge will help you do a superb job for this project — furthermore, you've already lined up one of the finest building contractors in town to take care of the project.
But how do you obtain the necessary financing for flipping? Should you go after a regular bank loan, you will have to wait roughly one to two months up until the money is approved and the funds are readily available. Because most sellers would prefer a fast closing, you might need to start seeking out additional funding options.
With banks bringing in more challenging loan guidelines in the recent past, it is harder for a self-employed person to get a home loan, especially if his credit rating is not optimal. So will a shortage of funding keep you from pursuing your dream? Absolutely not, seeing as you always have the Kansas City hard money loan option.
If you apply for a hard money home loan in Kansas City, you'll get what is possibly most vital to real estate transactions throughout the country — a fast closing of about fourteen days. What's more, the LTV value can reach up to 70% of the property's valuation, as estimated by a competent appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, could be seen as costlier than bank lending options. But the time frames of these loans are comparatively short, which means the rate is far less important. The price tag on such short-term loans should be looked at on par with any other financial outlay that you will have to meet pertaining to the project. When you have sold the house and have made a successful financial gain, you're able to recover this expense from the house — the same as recuperating the cost of brand-new appliances for the kitchen that you've installed.
In addition, even someone with low credit will be able to qualify for a hard money mortgage. The borrower's credit score will not be the single determining factor for Kansas City hard money lenders — they also analyze the piece of real estate, how much it is worth, its location, and its capacity to return their financial commitment if everything does not go as intended. The amount that an applicant can put down beforehand for the house, his real estate experience, and selling price of equivalent properties in the same neighborhood are additional factors that go into establishing an individual's qualification for a hard money real estate loan.
Locating a hard money lender in Kansas City to finance your flipping business is not very challenging, provided that the opportunity before you is promising and offers the right prospect for returns. Fill out the contact form on this page or give us a call to talk about your property.
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