Hard Money Loans in Kansas City
Suppose you've run across this really great bargain for a fix and flip property in a terrific location, and you are either a seasoned real estate investor or a newbie who wants to try out flipping homes. You've heard that competent house flippers, much like the couple on HGTV's Flip or Flop, have an impressive average profit margin of around $40,000 – $50,000. And yes, they are helped in a big way via their professional know-how, auction skills and familiarity with hard money loans. Nevertheless, you are certain that your superb rehab and renovation knowledge will help you do a quality job on this home — what's more, you already have lined up one of the premier building contractors in the business to take care of the project.
But where precisely do real estate investors obtain funds? A traditional lending institution, like for example a bank, takes no less than one to two months to authorize the loan and deliver the capital. With the sellers seeking a fast closing, that does not seem like a good idea to you at all.
With banks adding more challenging loan guidelines in the past several years, it has become more challenging for a self-employed individual to obtain a home loan, especially when his credit rating is not flawless. So will a lack of financing prevent you from following your dream? Most certainly not, given that you always have the Kansas City hard money loan alternative.
A hard money home loan in Kansas City can provide what's viewed as crucial to many real estate deals — a quick closing of only a 2-3 weeks and oftentimes even less. And additionally, financing can be done for up to 70% loan-to-value of the "as is" property's valuation, as established by a professional appraiser. With the rates starting out around 10%, hard money real estate loans might seem, at first, to be more expensive compared to traditional bank financing. But the lengths of these loans tend to be fairly short, which makes the interest rate far less important. When it comes to short-term loans of one or two years or less, you should think of them just like you would other expenses for your project. Once you have turned the property and have made a good gain, you're able to get back this expense from the home — much like recouping the cost of brand-new appliances for the kitchen that you installed.
Furthermore, even a person with low credit will be able to qualify for a hard money mortgage. Kansas City hard money lenders do not take on a loan strictly on the basis of the applicant's credit score — instead they will analyze the home, its location and value, and the home's capability to pay back the loan independent of the borrower. On top of this, if the borrower have proven experience in comparable real estate ventures, can put down cash for the down payment, and the cost of similar homes in the vicinity works in his favor, he stands a very good likelihood of being approved for a hard money real estate loan.
Locating a hard money lender in Kansas City to help with expenses for your renovation project is not very hard, so long as the opportunity that lies ahead of you is promising and offers the right prospect for returns. Fill out the contact form or call us to talk about your property or properties.
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