Hard Money Loans in Laurens
Suppose you've stumbled upon this really great bargain for a fix and flip property you found in a great location, and you happen to be either an experienced real estate investor or a first-timer who wants to try his hand at flipping. You've heard that veteran home flippers, like the couple on HGTV's Flip or Flop, turn an impressive average return close to $40,000 – $50,000. And indeed, they are aided in a major way via their professional know-how, auction expertise and knowledge of hard money loans. However, you are assured that your first class rehab and remodeling skills will help you do an outstanding job for this home — in addition, you've already lined up one of the most sought after building contractors in the area to take care of this job.
But how can real estate investors get funding? For those who meet with a regular lender, like a bank for a mortgage loan, it can take at least 4-8 weeks for the acceptance to come through and your money to be given out. So if you will be hoping for a fast closing, it's important to understand that this may set you back by a couple of weeks, making you lose out on the house.
To add to it, banks have been tightening their lending criteria in recent times, making it challenging for people to receive a typical home loan if their credit circumstances are not perfect or he does not have a regular salaried job. So should you stop trying and abandon your desire to venture into real estate? Most certainly not, because you always have the Laurens hard money loan option.
A hard money home loan in Laurens can provide what is deemed imperative to many real estate transactions — a very fast closing of just a couple of weeks and oftentimes less. Further, loan amounts can be made up to 70% loan-to-value of the as-is property value, as calculated by a professional appraiser. With lending rates starting at about 10%, hard money real estate loans might seem, at first glance, to be more expensive compared to traditional bank loans. But usually, the lending rate is not as relevant for these loans, given that they will never be long-term financing. The price tag on such short-term loans should be looked at on par with every other expenditure that you would need to meet pertaining to the project. Once you have resold the home and have made a positive profit, you'll be able to recoup this expense from the house — just like recouping the cost of brand-new home appliances that you installed.
Also, it's simple to obtain a hard money mortgage, even in the event your credit rating is not that superb. Rather than focusing entirely on the applicant's credit score or source of income, Laurens hard money lenders, who may be a privately owned company or an individual person, authorize a loan after assessing the property value, its salability, where it is located, and the odds of recouping their capital in the event of foreclosure. On top of that, if the person have proven experience in comparable real estate projects, can place down money towards the down payment, and the value of equivalent houses in the area works to his benefit, he has a good shot of being approved to get a hard money real estate loan.
So in case you have stumbled on a really good home to flip with a huge prospect of returns, you have also found yourself a hard money lender in Laurens who's prepared to fund your flipping venture. Complete the contact form or give us a call and let's discuss your project.
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