Hard Money Loans in Ketchikan
Suppose you've run into this truly good deal on a fix and flip property located in a great location, and you are either an experienced real estate investor or a first-timer who really wants to try out flipping homes. A majority of people know that capable professional flippers, such as Tarek and Christina El Moussa who do HGTV's reality home flipping program, Fix or Flop, can readily generate a typical profit margin of $40,000 to $50,000 when they rehab properties. It goes without saying their rehabbing experience, understanding of hard money loans, familiarity with the housing market, and auction skills have been major factors to their successes. Still, your rehab and renovation skills aren't bad either — aside from that, you've already located a good general contractor to handle this home.
But financing is usually a separate problem entirely. When you opt for an ordinary bank loan, you will wind up waiting around approximately 30-60 days before the mortgage loan is approved and your money is available. So if you will be looking for a fast closing, you need to realize that this will set you back by a couple of weeks, causing you to lose out on the home.
To add to it, banks have already been tightening their lending requirements in recent times, making it hard for a person to receive an ordinary home loan if their credit score is not perfect or he doesn't have a regular salaried profession. So will a lack of funds keep you from following your aspirations? Not at all, especially while Ketchikan hard money loans enable you to realize great things in the real estate market.
A hard money home loan in Ketchikan provides you with what's possibly most important to real estate investors — a quick closing time of as little as 14 days. In addition, the LTV value can go up to 70% of the property value, as estimated by a credentialed appraiser. With the interest rates starting near 10%, hard money real estate loans may look, at first, to be higher in price in comparison with traditional bank loans. But usually, the lending rate isn't as relevant for these loans, since they will never be long-term loans. The price of such short-term loans ought to be considered much like every other expenditure that you would have to meet pertaining to the project. And when you have turned the home, recouping this expense is the exact same as recuperating the expense for the bathroom upgrades you performed.
Besides, hard money mortgages are easy qualifying, even if you have very bad credit. Ketchikan hard money lenders don't authorize a loan exclusively according to the customer's credit score — instead they also assess the property, its location and value, and the home's capacity to pay back the loan by itself. How much an applicant can put down beforehand for the house, his past real estate experience, and price range of equivalent homes in the same vicinity are additional details that go into establishing an applicant's eligibility for a hard money real estate loan.
So any time you come across a really good and lucrative flipping opportunity, be assured you will have a hard money lender in Ketchikan, able to lend you the money you'll need. Complete the contact form on this page or get in touch with us via phone and let's discuss the property or properties you have in mind.
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