Hard Money Loans in Kodiak
There's this phenomenal possibility for rehabbing and flipping this wonderful old home in a fantastic part of town and it looks a lot like the deal you have been expecting for quite a while. A majority of people know that skilled professional flippers, like Tarek and Christina El Moussa who do HGTV's reality home flipping show, Fix or Flop, can readily earn a typical profit margin of $40,000 to $50,000 when they flip properties. And indeed, they are helped in a big way by their professional experience, auction expertise and knowledge of hard money loans. That said, you have likewise been brushing up your rehab and remodeling skills, have a contractor ready to go and are positive that you can do a bang up job on this home.
But financing is a different question altogether. In the event you go after a normal loan from the bank, you will have to wait somewhere around 4-8 weeks up until the money is approved and the funds are ready to go. So if you're wishing for a fast closing, you need to understand that this could cost you weeks, making you miss out on the house.
On top of this, banks have been tightening their lending requirements in recent years, which makes it tough for someone to receive an ordinary loan if their credit score is not perfect or he is lacking a consistent salaried job. So will inadequate financing stop you from following your ambitions? Certainly not, considering that you can always go the Kodiak hard money loan route to pay for your home renovating project.
A hard money home loan in Kodiak provides what's probably most important to real estate investors — a fast closing time period of as little as fourteen days. Further, loans can be done for up to 70% loan-to-value of the as-is home value, as established by a licensed appraiser. With interest rates starting out at about 10%, hard money real estate loans may seem, at first glance, to be more costly when compared with traditional bank financing. But the time frames of these loans tend to be quite short, which means the rate is far less important. As it pertains to short-term loans of 1 or 2 years or even less, you should consider them just like you would other expenses for your project. Once you have resold the home and have made a good gain, you can get back this expense from the home — very much like recouping the cost of brand-new kitchen appliances that you put in.
In addition, even individuals with weak credit can easily be eligible for a hard money mortgage. Instead of focusing strictly on the borrower's credit score or net income, Kodiak hard money lenders, who can be a private company or an individual, approve a loan after examining the property value, its salability, where it is located, and the odds of recuperating their money in case they have to foreclose the loan. Several other factors that affect a borrower's approval for a hard money real estate loan include what amount of money he can put towards a down payment, his prior experience as a real estate investor, and price of comparative, fairly recently sold residences nearby.
Locating a hard money lender in Kodiak to cover expenses for your flipping business is not hard, so long as the opportunity in front of you is promising and offers a strong potential for returns. Complete the contact form on this page or call us to discuss the property you have in mind.
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