Hard Money Loans in Keego Harbor
Suppose you've stumbled upon this truly good deal on a fix and flip property located in an ideal neighborhood, and you happen to be either an experienced real estate investor or a first-timer who hopes to try his hand at flipping. You've heard that professional property flippers, such as the married couple on HGTV's Flip or Flop, turn a remarkable average return near forty to fifty thousand dollars. And sure, they are helped in a major way as a result of their professional know-how, auction expertise and knowledge of hard money loans. On the other hand, you are assured that your superb rehab and remodeling talents will help you do a superb job on the property — in addition, you have already lined up one of the most recommended contractors in the business to work on the job.
But how do you obtain the needed capital for home flipping? A conventional lender, for instance a bank, takes at the very least 1-2 months to authorize the mortgage and deliver the money. So if you will be looking for a fast closing, you must recognize that this may set you back by a few weeks, causing you to lose out on the sale.
With banks adding harder loan criteria in the last few years, it's become much harder for a self-employed individual to get a home loan, particularly if his credit situation is not perfect. So does this mean you have no option, but to abandon your ambition to venture into rehabbing? Absolutely not, given that you also have the Keego Harbor hard money loan alternative.
A hard money home loan in Keego Harbor provides you with what's probably most crucial to real estate investors — a fast closing time period of as few as a few weeks. Further, loan amounts are made up to 70% loan-to-value of the as-is house value, as determined by a licensed appraiser. On the surface, hard money real estate loans, with starting lending rates of 10%, seem to be more expensive than bank lending options. But in reality, the lending rate is not as relevant for these loans, simply because they are not long-term loans. As it pertains to short-term loans of 1 or 2 years or less, you should think of them identical to any other expense for your project. Once you have sold the property or home and have made a positive profit, you'll be able to recover this expense from the property — the same as recovering the money necessary for the brand-new home appliances that you have put in.
Additionally, it's simple to qualify for a hard money mortgage, regardless if your credit situation is not that superb. Instead of focusing only on the borrower's credit score or source of income, Keego Harbor hard money lenders, who may be a privately owned company or an individual person, authorize a loan as a result of examining the property value, its salability, where it is located, and the likelihood of recuperating their capital in the event of foreclosure. On top of this, if the individual have proven experience in comparable real estate projects, can put down cash for a down payment, and the value of similar homes in the neighborhood works in his favor, he has an excellent likelihood of being approved to obtain a hard money real estate loan.
So in the event you run into a really good and lucrative investment opportunity, relax knowing you'll have a hard money lender in Keego Harbor, able to loan you the cash that you need. Complete the form on this page or call us and let's discuss your property or properties.
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