Hard Money Loans in Kotzebue
Suppose you've come across this excellent bargain for a fix and flip property you found in a terrific location, and you are either a seasoned real estate investor or a first-timer who really wants to try out flipping homes. Expert property flippers, similar to the young married couple on Flip or Flop, HGTV's reality flipping program, are able to earn a profit of $40-$50k on the majority of projects. Naturally, you also know that their successes are credited to the fact that they are experts, are knowledgeable in hard money loans, they understand the marketplace really well and in addition, they know how to work a public auction for getting a reasonable deal. Still, your rehab and renovation knowledge isn't bad either — in any case, you've already identified a suitable licensed contractor to tackle this home.
But money can be a different question altogether. In the event you apply for an ordinary loan via a bank, you will need to wait approximately 4-8 weeks before the money is approved and your money is accessible. Because most home owners favor a fast closing, you might have to begin searching for some other funding options.
To add to it, banks have been tightening up their lending standards in recent years, making it difficult for people to get a regular home loan if their credit rating is not flawless or he does not have a consistent salaried profession. So does this leave you with no other option, but to abandon your aspiration to venture into home flipping? Absolutely not, seeing as you always have the Kotzebue hard money loan option.
Should you put in an application for a hard money home loan in Kotzebue, you'll get what is possibly most important to real estate purchases across the country — a very fast closing of about 14 days. Further, loan amounts can be made up to 70% loan-to-value of the "as is" home's valuation, as determined by a licensed appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, appear to be more pricey than bank lending products. But usually, the rate of interest is not as relevant for these loans, simply because they aren't long-term loans. The price tag on such short-term loans ought to be evaluated on par with every other financial outlay that you would encounter during the project. And when you have finally sold the property or home, recuperating this expense is comparable to recouping the expense for the bathroom or other upgrades you did.
Furthermore, even individuals with poor credit can easily be eligible for a hard money mortgage. Kotzebue hard money lenders don't approve a loan solely based on the person's credit score — rather they additionally look at the property or home, where it is located and what it is worth, and the home's capacity to pay back the loan independent of the applicant. How much an applicant can put upfront towards the home, how much experience he has in real estate investments, and price range of equivalent homes in the same vicinity are additional details that go into analyzing an applicant's suitability for a hard money real estate loan.
So in the event you run into an outstanding and lucrative flipping opportunity, feel comfortable knowing you'll have a hard money lender in Kotzebue, prepared to lend you the cash that you need. Fill out the contact form or give us a call and let's talk about your property.
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