Hard Money Loans in Kent
Suppose that you've encountered this truly good bargain for a fix and flip property located in a great location, and you're either an experienced real estate investor or a newbie who hopes to try his hand at flipping. You may have heard that professional property flippers, such as the couple on HGTV's Flip or Flop, turn an impressive average profit of around forty to fifty thousand dollars. Naturally, you also understand that their results can be attributed to the simple fact that they're industry experts, are knowledgeable in hard money loans, they know the market quite well and furthermore, they know how to work an auction for getting a reasonable deal. Nonetheless, your rehab and remodeling knowledge isn't bad either — besides, you have already found the right general contractor to start this home.
But where do you find the needed capital for flipping? If you get in touch with a common lender, much like a bank for a mortgage loan, it's more than likely going to take a minimum of thirty to sixty days for your approval to be completed and the funds to be sent out. So if you're hoping for a fast closing, it's important to realize that this could set you back by a few weeks, causing you to lose out on the sale.
Moreover, should you have an unfavorable credit situation or do not receive a routine income, it is normally harder to be eligible for bank financing, considering the more stringent loan guidelines banks have put in place recently. So will a shortage of funds stop you from sticking with your dream? Certainly not, seeing as you always have the Kent hard money loan alternative.
If you decide to obtain a hard money home loan in Kent, you'll get what's probably most vital to real estate purchases throughout the country — a fast closing of about 14 days. Furthermore, hard money lenders are capable of doing loans up to 70% LTV of the property's valuation, as calculated by a qualified third-party evaluator. With the interest rates starting out at about 10%, hard money real estate loans may look, at first glance, to be more costly as compared with traditional bank lending products. But in reality, the rate of interest is not as pertinent for these loans, simply because they aren't long-term loans. The cost of such short-term loans ought to be evaluated much like any other cost that you would have to meet pertaining to the project. When you have resold the house and have made a positive financial gain, you're able to recover this expense from the property — just like recuperating the money necessary for the brand-new appliances for the kitchen that you put in.
Furthermore, even a person with poor credit will be able to be eligible for a hard money mortgage. Kent hard money lenders don't authorize a loan exclusively on the basis of the person's credit score — instead they additionally look at the property or home, its valuation and location, and the home's capability to pay back the loan independent of the borrower. Other criteria that have an impact on a person's approval for a hard money real estate loan can include the amount he is able to put towards a down payment, his prior experience as a real estate investor, and price range of similar, recently sold properties in the area.
Finding a hard money lender in Kent to fund your flipping business is not very challenging, assuming that the opportunity that lies ahead of you is promising and offers a strong potential for returns. Enter your info into the form on this page or get in touch with us via phone to talk about the property you have in mind.
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