Hard Money Loans in Petoskey

Suppose you've run across this excellent deal on a fix and flip property you found in a great neighborhood, and you're either a skilled real estate investor or a newbie who wants to try out flipping homes. Everyone knows that capable professional flippers, such as Tarek and Christina El Moussa who do HGTV's reality flipping program, Fix or Flop, can make a typical profit margin of forty to fifty thousand dollars on their flips. Without question, their past experiences rehabbing, understanding of hard money loans, familiarity with the market, and auction talents have had a big role in their success. Nonetheless, your rehab and remodeling skills aren't that bad either — besides, you have already found a suitable general contractor to handle the project.

But how do you find the necessary financing for home flipping? For those who get in touch with a common lender, like a bank for financing, it very likely will take at least 4-8 weeks for your approval to come through and the funds to be sent out. With the home owners looking for a fast closing, that doesn't appear like a wise idea to you in the slightest.

To add to it, banks have already been tightening their lending standards in recent years, rendering it more hard for a person to obtain a typical home loan if their credit situation is not perfect or he does not possess a regular salaried occupation. So does this leave you with no other option, but to abandon your aspiration of venturing into home renovating? Certainly not, given that you always have the Petoskey hard money loan option.

A hard money home loan in Petoskey provides you with what's perhaps most essential to real estate investors — a quick closing time period of as little as 14 days. Furthermore, hard money lenders frequently agree to funding up to 70% LTV of the property or home value, as estimated by a licensed third-party evaluation. With the interest rates starting out around 10%, hard money real estate loans may appear, at first glance, to be more costly when compared with conventional bank loans. But when you understand these are not long-term home loans, the rate can be misleading. When it comes to short-term loans of a few years or less, you should think about them much like you would other expenses for your project. And once you've finally sold the property, recouping this expense is comparable to recouping the expense for the bathroom improvements you performed.

Aside from that, hard money mortgages are easy qualifying, even in the event you have got a bad credit score. The borrower's credit score will not be the single determining factor for Petoskey hard money lenders — they also analyze the property, its market valuation, its location, and its ability to earn back their financial commitment if everything does not work out as intended. Other variables that have an impact on a borrower's approval for a hard money real estate loan include what amount of money he is in a position to put towards a down payment, his former experience as a real estate investor, and selling price of comparable, fairly recently sold homes in the area.

If you happen to have stumbled upon a wonderful real estate opportunity with a high chance of returns, you've also discovered a hard money lender in Petoskey that's willing to provide financing for your fix and flip project. Enter your info into the contact form or call us to talk about your project.

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Investment property loans only please, no primary residences at this time.