Hard Money Loans in North Charleston
Imagine you've run into this truly good deal for a fix and flip property located in a terrific location, and you're either a skilled real estate investor or a newbie who really wants to try out flipping houses. Many people know that skilled professional flippers, along the lines of Tarek and Christina El Moussa who star in HGTV's reality home flipping program, Fix or Flop, are able to make an average profit margin of $40,000 to $50,000 when they flip properties. It's fair to say their rehabbing experience, knowledge of hard money loans, expertise in their housing market, and auction skills have played an important role in their results. Having said that, you have also been brushing up your rehab and remodeling knowledge, have a building contractor ready for the project and are positive that you're capable of doing a bang up job for this house.
But capital is often a separate issue altogether. If you meet with a regular lender, like a bank for a loan, it can take no less than four to eight weeks for your acceptance to be completed and your money to be distributed. Thus if you happen to be hoping for a fast closing, you need to understand that this could cost you a few weeks, causing you to miss out on the home.
Moreover, should you have a less-than-perfect credit situation or do not receive a regular source of income, it is usually more challenging for you to be eligible for a bank financing, seeing the tighter loan criteria banks have introduced as of late. So does this leave you with no option, but to abandon your ambition of venturing into the fix and flip business? Absolutely not, because you also have the North Charleston hard money loan alternative.
A hard money home loan in North Charleston gives you what's considered imperative to many real estate transactions — a quick closing of just a 2-3 weeks and more often than not even less. And additionally, financing can be done for up to 70% loan-to-value of the "as is" property value, as determined by a licensed appraiser. At first, hard money real estate loans, with starting lending rates of 10%, appear to be more costly than bank financing. But usually, the rate of interest isn't as relevant for these loans, since they will never be long-term loans. Short-term loans of a couple months to a handful of years are best looked at in terms of cost of capital, similar to all other expenditures involved with a project. Once you've turned the property or home and have made a positive return, you'll be able to get back this expense from the house — much like recuperating the money necessary for the brand-new home appliances that you've put in.
What's more, it is easy to be eligible for a hard money mortgage, even when your credit score is not that extraordinary. North Charleston hard money lenders do not take on a loan exclusively based on the person's credit score — instead they also evaluate the property, its location and value, and the property's ability to pay back the financing by itself. Several other factors that have an impact on an applicant's approval for a hard money real estate loan include how much money he can put towards a down payment, his past experience being a real estate investor, and selling price of comparable, recently sold properties nearby.
So should you come across a good and worthwhile flipping opportunity, rest assured you'll have a hard money lender in North Charleston, ready to loan you the cash you'll need. Submit the contact form or give us a call to discuss your property.
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