Hard Money Loans in Kennesaw
A fantastic buy on a fix and flip property located in a very good area of the city shows up out of the blue — seems so good that it is difficult to believe. Everybody knows that knowledgeable professional flippers, like Tarek and Christina El Moussa from HGTV's reality home flipping series, Fix or Flop, are able to turn an average profit margin of forty to fifty thousand dollars on their flips. Of course, you also realize that their great results are due to the fact that they're industry experts, are knowledgeable in hard money loans, they understand market trends quite well and furthermore, they are good at working a public auction for getting a good price. Nonetheless, your rehab and remodeling knowledge isn't bad either — besides, you've already identified an ideal building contractor to take on the job.
But funding can be a separate problem altogether. In the event you get in touch with a standard lending institution, much like a bank for financing, it is more than likely going to take, at a minimum, thirty to sixty days for your approval to be completed and your funds to be given out. With all the home owners looking for a fast closing, that does not appear like a great idea to you in the slightest.
On top of this, banks have been tightening up their lending criteria in recent times, which makes it tough for people to obtain a traditional home loan if their credit score is not flawless or he doesn't have a consistent salaried occupation. So does this mean you are without an option, but to abandon your dream to venture into flipping? By no means, especially when Kennesaw hard money loans enable you to realize great things in the real estate world.
A hard money home loan in Kennesaw provides what's possibly most sought after by real estate investors — a very fast closing time of as little as two weeks. Aside from that, loans can be made up to 70% loan-to-value of the "as is" valuation, as established by a qualified appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, seem to be more expensive than bank loans. But usually, the rate of interest isn't as relevant for these loans, because they are not long-term loans. As it pertains to short-term loans of 1 or 2 years or less, you should consider them just like you would other expenses for the project. After you rehab and sell the home, recuperating this expense is the same as recovering the money you spent for stainless steel appliances you put in the house.
Apart from this, hard money mortgages are not hard to qualify for, regardless if you posses poor credit. Instead of focusing solely on the borrower's credit score or wages, Kennesaw hard money lenders, who can be a privately owned company or an individual person, say yes to a loan after evaluating the home value, its marketability, its location, and the likelihood of recouping their money in case of foreclosure. How much money an applicant can put upfront for the property or home, his real estate experience, and price range of comparative homes in the same area are various other factors that go into determining an individual's qualification for a hard money real estate loan.
If you happen to have stumbled upon an excellent fixer-upper with a high probability of returns, you've also found yourself a hard money lender in Kennesaw that is happy to provide funding for your fix and flip project. Submit the contact form or call us and let's talk about your property.
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