Hard Money Loans in Kirkwood
Suppose that you've run into this excellent deal on a fix and flip property in a great location, and you're either a skilled real estate investor or a newbie who is looking to try out flipping houses. Most folks know that knowledgeable professional flippers, along the lines of Tarek and Christina El Moussa who do HGTV's reality home flipping series, Fix or Flop, can readily generate a typical profit of $40,000 to $50,000 on their flips. And indeed, they are helped in a big way due to their professional knowledge, auction abilities and knowledge of hard money loans. Still, your rehab and remodeling skills aren't bad either — aside from that, you have already found a good building contractor to start the home.
But financing is usually a separate problem entirely. Should you meet with a common lending institution, much like a bank for a mortgage loan, it's in all likelihood going to take no less than four to eight weeks for your approval to be completed and the funds to be accessible. Since the majority of sellers would prefer a fast closing, it may be advisable to begin searching for additional financing alternatives.
To add to it, banks have been tightening their lending requirements as of late, which makes it hard for someone to receive a traditional loan if their credit score is not perfect or he does not possess a consistent salaried job. So does this mean you have no option, but to drop your aspiration of getting into flipping? By no means, particularly when Kirkwood hard money loans enable you to achieve great things in the real estate market.
A hard money home loan in Kirkwood promises what's probably most essential to real estate investors — a quick closing in as few as two weeks. Furthermore, hard money lenders are capable of doing funding up to 70% LTV of the property's valuation, as calculated by a professional third-party appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, appear to be higher priced than bank loans. But if you appreciate that these are not long-term loans, the rate tends to be misleading. As it pertains to short-term loans of 1 or 2 years or less, you should think about them the same as you might for every other expenditure for your project. After you remodel and sell the home, recuperating this expense is the same as recovering the expense for stainless steel appliances you placed into the place.
Besides, hard money mortgages are easy qualifying, whether or not you posses bad credit. Kirkwood hard money lenders do not approve a loan exclusively based on the borrower's credit score — instead they also assess the property or home, its value and location, and the property's capability to pay back the financing independent of the borrower. How much an individual can put down beforehand for the property or home, his real estate experience, and price range of comparable properties in the same vicinity are other details that go into ascertaining an individual's suitability for a hard money real estate loan.
Searching for a hard money lender in Kirkwood to cover expenses for your real estate project is not hard, as long as the opportunity that lies ahead of you is promising and boasts a strong potential for returns. Fill out 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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