Hard Money Loans in Kentwood
An outstanding bargain on a fix and flip opportunity in a very good subdivision all of a sudden shows up — seems too good to be true. Professional home flippers, like the young married couple on Flip or Flop, HGTV's reality flipping show, are able to haul in a profit of $40-$50k as an average on more than one occassion. Undoubtedly, you also understand that their success are due to the simple fact that they are professionals, are knowledgeable in hard money loans, they understand the marketplace quite well and they also know how to work a public auction to purchase their houses at an appropriate price. Still, your rehab and renovation knowledge isn't that bad either — aside from that, you've already located the right licensed contractor to tackle the job.
But where do real estate investors obtain money? For those who opt for a conventional loan via a bank, you will end up waiting around roughly 4-8 weeks up until the money is approved and your funds are accessible. With the home owners looking for a fast closing, that does not appear like a good idea to you at all.
With banks adding harder loan criteria in recent years, it's become much harder for a self-employed individual to get a home loan, especially when his credit circumstances are not flawless. So will inadequate funds keep you from sticking to your ambitions? Certainly not, considering that you can always go the Kentwood hard money loan route to finance your home renovating project.
A hard money home loan in Kentwood offers you what's considered essential to most real estate deals — a very fast closing of just a 2-3 weeks and more often than not less. And additionally, financing can be made up to 70% loan-to-value of the "as is" value, as calculated by a professional appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, seem to be more costly than bank financing. But the time frames of these loans are quite shorter, which means the rate is much less important. Short-term loans of several months to a few years are best approached in terms of cost of capital, much like every other expense associated with a project. After you renovate and sell the property, recuperating this expense is no different than recouping the expense for new kitchen appliances you placed into the house.
Aside from that, hard money mortgages are not difficult to qualify for, regardless if you have got poor credit. Rather than focusing primarily on the applicant's credit score or wages, Kentwood hard money lenders, who can be a private company or an individual person, say yes to a loan after analyzing the property value, ease of marketability, its location, and the possibility of recouping their money if they have to foreclose the loan. Adding to that, if the person can demonstrate prior experience in equivalent real estate endeavors, can put down cash for a down payment, and the value of similar properties in the area works to his benefit, he has got an excellent likelihood of qualifying to get a hard money real estate loan.
Locating a hard money lender in Kentwood to finance your fix and flip endeavor is not very hard, so long as the opportunity that lies ahead of you is promising and offers a strong prospect for returns. Fill out the form or give us a call and let's discuss your property or properties.
A loan specialist will be in touch shortly