Hard Money Loans in Maple Grove
You discovered this phenomenal opportunity to fix and flip this wonderful out of date house in a good area and it looks like the deal you've been looking forward to for quite some time. Professional residential home flippers, like the young married couple on Flip or Flop, HGTV's reality flipping show, are able to generate a profit of forty to fifty grand as an average on more than one occassion. Without question, their rehabbing experience, knowledge of hard money loans, expertise in their market, and auction skills have been large factors to their results. Still, your rehab and renovation skills aren't that bad either — besides, you have already located the right contractor to tackle this home.
But where do you get the needed capital for flipping? If you apply for a traditional bank loan, you will have to wait around somewhere around 4-8 weeks until the mortgage is authorized and the money is readily available. Since the majority of home owners prefer a fast closing, you might want to start looking for other financing alternatives.
With banks bringing in tougher loan guidelines in the recent past, it's become more difficult for a self-employed person to obtain a mortgage loan, particularly if his credit rating is not optimal. So do you have to stop trying and forego your ambition to embark into fix and flips? Never, due to the fact you can always go the Maple Grove hard money loan route to fund your flipping project.
A hard money home loan in Maple Grove offers you what's regarded as vital to most real estate deals — a very fast closing of only a 2-3 weeks and at times less. Plus, the LTV value can reach up to 70% of the home's valuation, as estimated by a certified appraiser. With lending rates starting off around 10%, hard money real estate loans might seem, at first, to be higher in price in comparison with traditional bank lending products. But if you consider these are not long-term loans, the rate of interest tends to be misleading. The price tag on such short-term loans should be viewed on par with every other expense that you will have to meet pertaining to the project. Right after you remodel and sell the house, recouping this expense is no different than recouping the money you spent for stainless steel appliances you put in the home.
Additionally, it's simple to be eligible for a a hard money mortgage, regardless if your credit situation is not that impressive. Maple Grove hard money lenders don't take on a loan exclusively on the basis of the borrower's credit score — rather they will look at the property, its location and value, and the home's ability to pay back the loan on its own. The amount that a borrower can put down in advance for the home, his real estate experience, and selling price of comparative properties in the same area are various other factors that go into analyzing an individual's qualification for a hard money real estate loan.
Locating a hard money lender in Maple Grove to fund your real estate project is not difficult, so long as the opportunity in front of you is promising and boasts the right potential for returns. Submit the contact form on this page or call us to talk about the property you have in mind.
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