Hard Money Loans in Pataskala
A fabulous buy on a fix and flip opportunity in a very good subdivision suddenly turns up — seems so good that it is difficult to believe. Expert home flippers, such as the young married couple on Flip or Flop, HGTV's reality flipping series, are capable of bringing in a profit of $40-$50k on average. Without question, their rehabbing experience, understanding of hard money loans, expertise in their housing market, and auction talents have had an important part in their successes. Still, your rehab and renovation knowledge isn't that bad either — aside from that, you've already located a good building contractor to tackle the job.
But where do you obtain the necessary financing for flipping? A traditional lender, like for example a bank, takes no less than one to two months to authorize the mortgage and hand over the monies. Given that home owners favor a fast closing, you may have to begin seeking out some other financing options.
With banks introducing tougher loan criteria in the last few years, it is now tougher for a self-employed person to get a home loan, particularly if his credit score is not perfect. So will a lack of financing prevent you from sticking to your aspirations? Certainly not, because you also have the Pataskala hard money loan option.
A hard money home loan in Pataskala can provide what's regarded as essential to most real estate sales — a quick closing of only a couple of weeks and oftentimes even less. Also, hard money lenders can do lending up to 70% LTV of the home's valuation, as established by a credentialed third-party appraiser. At first, hard money real estate loans, with starting lending rates of 10%, appear to be higher in price than bank lending options. But once you consider these loans are not long-term home loans, the interest rate may be misleading. The cost of such short-term loans should be evaluated on par with every other cost that you would encounter in the course of the project. Once you've turned the house and have made a good gain, you're able to reclaim this expense from the home — just like recuperating the money necessary for the brand-new kitchen appliances that you put in.
Also, it is easy to obtain a hard money mortgage, even if your credit situation is not that extraordinary. The borrower's credit score isn't the lone deciding factor for Pataskala hard money lenders — additionally, they consider the piece of real estate, how much it is worth, its location, and its capability to bring back their investment if things should not go as intended. Additional variables that have an impact on a borrower's approval for a hard money real estate loan include what amount of money he is able to put towards a down payment, his prior experience as a real estate investor, and price range of comparable, fairly recently sold homes in the neighborhood.
So in case you have stumbled on a really good home to flip with a huge prospect of returns, you've also stumbled upon a hard money lender in Pataskala that is prepared to finance your rehab venture. Submit the contact form on this page or call us to talk about the property or properties you have in mind.
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