Hard Money Loans in Keyser
An incredible deal on a fix and flip property in a very good area of the city shows up out of the blue — sounds too good to be true. Everyone knows that capable professional flippers, like Tarek and Christina El Moussa who do HGTV's reality flipping program, Fix or Flop, are able to make an average profit margin of forty to fifty thousand dollars on their home projects. Naturally, you also understand that their success are due to the simple fact that they are industry experts, are proficient in hard money loans, they know the market really well and in addition, they know how to work a public auction for getting an appropriate deal. Still, your rehab and renovation skills aren't that bad either — besides, you've already found a good licensed contractor to tackle the home.
But how can you obtain the necessary capital for home flipping? If you apply for a normal bank loan, you will need to wait around somewhere around 1 to 2 months up until the time the money is approved and the funding is readily available. Since most home owners prefer a fast closing, it may be advisable to start looking for other funding alternatives.
Moreover, if you have a sub-optimal credit situation or do not have a regular source of income, it may be more difficult to be eligible for bank financing, seeing the more stringent loan guidelines banks have introduced in recent times. So must you stop trying and abandon your ambition to get into fix and flips? By no means, because you could always go the Keyser hard money loan route to fund your home renovating project.
A hard money home loan in Keyser provides what is possibly most sought after by real estate investors — a quick closing time period of as little as a few weeks. Aside from that, loan amounts can be made up to 70% loan-to-value of the "as is" home's valuation, as established by a qualified appraiser. A number of people regard hard money real estate loans to be more expensive than standard loans, because the interest rates for these loans usually start off at 10%. But in reality, the rate of interest is not as pertinent for these loans, given that they will never be long-term financing. Short-term loans of a couple of months to a few years are best approached as cost of capital, much like all other expenditures in connection with a project. And when you've finally turned the property or home, recuperating this expense is comparable to recouping the expense for the bathroom updates you did.
Additionally, it isn't difficult to obtain a hard money mortgage, even in the event your credit score is not that great. As an alternative for focusing only on the person's credit score or income, Keyser hard money lenders, who can be a private company or an individual person, approve a loan after analyzing the property value, ease of marketability, where it is located, and the likelihood of recovering their capital should they have to foreclose the loan. How much of their own money a borrower can put down beforehand towards the home, how much experience he has in real estate investments, and selling price of comparable homes in the same area are other details that go into establishing a borrower's suitability for a hard money real estate loan.
So in case you have found a really good real estate opportunity with a high prospect of returns, you have also discovered a hard money lender in Keyser that's prepared to provide funding for your rehab venture. Submit the form on this page or give us a call and let's talk about your property or properties.
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