Hard Money Loans in Minnetonka
Suppose that you've come across this excellent bargain on a fix and flip property located in an ideal neighborhood, and you are either an experienced real estate investor or a newbie who wants to try out flipping homes. Professional property flippers, similar to the young couple on Flip or Flop, HGTV's reality flipping show, are capable of earning a profit of forty to fifty grand on average. And indeed, they are helped in a major way as a result of their professional knowledge, auction skills and familiarity with hard money loans. Having said that, you have also been developing your rehab and renovation skills, have a very good licensed contractor lined up and are confident that you will be able to do an impressive job for this home.
But how exactly do real estate investors obtain financing? When you apply for a normal loan via a bank, you will wind up waiting approximately 30-60 days until the loan is authorized and your funding is accessible. Because most sellers would rather have a fast closing, it may be advisable to begin seeking out other financing alternatives.
What's more, should you have a sub-optimal credit score or do not have a regular income, it is usually more difficult for you to obtain bank financing, with the more stringent loan criteria banks have put in place as of late. So does that mean you have no option, but to give up your dream to venture into the fix and flip business? Certainly not, considering that you could always use the Minnetonka hard money loan approach to finance your rehab project.
A hard money home loan in Minnetonka can provide what is viewed as imperative to many real estate transactions — a fast closing of just a 2-3 weeks and sometimes less. And additionally, loan amounts can be made up to 70% loan-to-value of the as-is house's valuation, as established by a professional appraiser. With interest rates starting off at about 10%, hard money real estate loans may appear, initially, to be more expensive in comparison with traditional bank loans. But the lengths of these loans are rather short, which means the interest rate is much less important. The price of such short-term loans ought to be evaluated much like any other expenditure that you would need to meet for the project. And when you've finally sold the house, recuperating this expense is the exact same as recouping the expense for the bathroom or other upgrades you did.
Aside from that, hard money mortgages are not hard to qualify for, even if you have below-average credit. Minnetonka hard money lenders don't authorize a loan exclusively according to the applicant's credit score — instead they will assess the property, its location and value, and the property's capability to pay back the loan by itself. How much an individual can put upfront towards the house, how much experience he has in real estate investing, and selling price of comparable homes in the area are additional factors that go into establishing an individual's suitability for a hard money real estate loan.
So in the event you run into a very good and profitable investment opportunity, relax knowing you will have a hard money lender in Minnetonka, willing to lend you the money you may need. Complete the form or call us and let's talk about your property or properties.
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