Hard Money Loans in Mount Pleasant
A remarkable buy on a fix and flip property in an excellent area of the city suddenly shows up — seems so good that it is hard to believe. Professional house flippers, like the young married couple on Flip or Flop, HGTV's reality flipping series, are able to earn a profit of $40-$50k on average. And sure, they are helped in a major way by their professional knowledge, auction skills and familiarity with hard money loans. However, you're convinced that your first class rehab and remodeling knowledge will enable you to do a quality job on this property — furthermore, you already have lined up one of the finest general contractors in town to take on the project.
But how can you obtain the necessary financing for flipping? A traditional lending institution, like for example a bank, takes at a minimum 1 to 2 months to approve the loan and hand over the money. Thus if you are anticipating a fast closing, it's important for you to understand that this may cost you a couple weeks, making you miss out on the home.
With banks adding more challenging loan requirements in recent years, it is now tougher for a self-employed person to obtain a home loan, particularly if his credit rating is not optimal. So does this mean you have no option, but to give up your dream to venture into rehabbing? By no means, particularly when Mount Pleasant hard money loans will assist you to achieve great things in real estate.
A hard money home loan in Mount Pleasant offers you what is regarded as vital to many real estate deals — a fast closing of just a 2-3 weeks and at many times even less. Plus, the LTV value can reach up to 70% of the property value, as determined by a certified appraiser. With loan rates starting out near 10%, hard money real estate loans may look, initially, to be more expensive as compared with conventional bank loans. But in reality, the rate of interest is not as pertinent for these loans, since they are not long-term loans. When it comes to short-term loans of a few years or even less, you should think of them the same as you might for any other expense for your project. Once you have sold the home and have made a successful gain, you're able to recover this expense from the property or home — much like recuperating the cost of brand-new kitchen appliances that you put in.
What's more, it is simple to be eligible for a a hard money mortgage, regardless of whether your credit score is not that extraordinary. The person's credit score isn't the lone determining factor for Mount Pleasant hard money lenders — they also examine the piece of real estate, how much it is worth, where it is located, and its ability to earn back their financial commitment if things should not go as intended. Adding to this, if the borrower can demonstrate past experience in comparable real estate projects, can put down money for a down payment, and the price of similar houses in the neighborhood works to his benefit, he has a very good likelihood of qualifying for a hard money real estate loan.
So if you have found an excellent real estate opportunity with a high potential for returns, you have also discovered a hard money lender in Mount Pleasant who's prepared to provide financing for your fix and flip ventures. Complete the contact form on this page or call us to discuss the project you have in mind.
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