Hard Money Loans in Norfolk
Imagine you've come across this truly good deal on a fix and flip property located in a great neighborhood, and you're either an experienced real estate investor or a newbie who hopes to try his hand at flipping. Expert residential home flippers, similar to the young couple on Flip or Flop, HGTV's reality flipping show, are capable of generating a profit of forty to fifty grand on a consistent basis. It's fair to say their rehabbing experience, understanding of hard money loans, familiarity with the market, and auction skills have played a big role in their successes. Nonetheless, your rehab and renovation knowledge isn't bad either — in any case, you have already located a suitable building contractor to handle the home.
But how do real estate investors find funding? When you opt for a regular loan from the bank, you will wind up waiting approximately 1 to 2 months until eventually the mortgage loan is approved and the funds are ready. So if you will be expecting a fast closing, you have to be aware that this may cost you a few weeks, causing you to lose out on the home.
On top of this, banks have been tightening their lending requirements as of late, making it difficult for a person to receive a regular home loan if their credit score is not perfect or he does not possess a regular salaried profession. So does this mean you are without an option, but to give up your dream to venture into flipping? Never, because you can always use the Norfolk hard money loan approach to fund your home renovating project.
A hard money home loan in Norfolk boasts what's perhaps most essential to real estate investors — a quick closing in as little as 2 weeks. Besides that, hard money lenders can approve loans up to 70% LTV of the home's valuation, as established by a professional third-party evaluation. At first glance, hard money real estate loans, with starting interest rates of 10%, seem to be more pricey than bank lending options. But once you understand these loans are not long-term mortgage loans, the interest rate tends to be misleading. Short-term loans of a couple months to a few years are best understood in terms of cost of capital, much like every other expense associated with a project. And as soon as you have sold the home, recuperating this expense is the exact same as recouping the expense for the bathroom or other upgrades you did.
Moreover, even individuals with weak credit can still qualify for a hard money mortgage. Norfolk hard money lenders do not take on a loan strictly judging by the applicant's credit score — instead they additionally evaluate the home, its location and value, and the home's capacity to pay back the financing on its own. The amount that a borrower can put down in advance for the property, his real estate experience, and price range of comparative properties in the same neighborhood are additional factors that go into establishing a borrower's eligibility for a hard money real estate loan.
Finding a hard money lender in Norfolk to help with expenses for your renovation project is not difficult, so long as the opportunity that lies before you is promising and has a good prospect for returns. Complete the form or get in touch with us via phone and let's discuss the project you have in mind.
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