Hard Money Loans in Pleasant Prairie
Suppose you've run into this truly good bargain for a fix and flip property in a great neighborhood, and you happen to be either an experienced real estate investor or a newbie who wants to try out flipping homes. Many people know that skilled professional flippers, such as Tarek and Christina El Moussa who star in HGTV's reality home flipping show, Fix or Flop, can turn a typical profit margin of $40,000 to $50,000 in their rehab business. And sure, they are aided in a major way due to their professional know-how, auction skills and knowledge of hard money loans. That said, you have also been brushing up your rehab and renovation skills, have a general contractor ready to go and are certain that you can do a great job for this home.
But money is often a different problem entirely. When you approach a customary lender, such as a bank for a loan, it can take a minimum of thirty to sixty days for your acceptance to come through and the funds to be accessible. With the sellers wanting a fast closing, that does not seem like a wise idea to you at all.
On top of this, banks have already been tightening their lending criteria as of late, rendering it more difficult for someone to receive a traditional home loan if their credit score is not flawless or he does not have a consistent salaried job. So will a lack of financing keep you from pursuing your dream? Certainly not, seeing as you always have the Pleasant Prairie hard money loan option.
A hard money home loan in Pleasant Prairie provides you with what is perhaps most desired by real estate investors — a fast closing time period of as few as two weeks. Also, hard money lenders can approve funding up to 70% LTV of the home value, as identified by a qualified third-party evaluator. At first, hard money real estate loans, with starting interest rates of 10%, seem to be more costly than bank loans. But usually, the rate of interest isn't as useful a measure for these loans, because they are not long-term loans. When it comes to short-term loans of several years or less, you should think of them much like you would other expenditures for your project. And when you've flipped the property, recouping this expense is comparable to recouping the expense for all the kitchen and bath upgrades you performed.
In addition, even individuals with low credit can easily qualify for a hard money mortgage. The applicant's credit score will not be the single determining factor for Pleasant Prairie hard money lenders — they also examine the house, its market value, its location, and its capacity to bring back their financial commitment if things should not go as planned. Several other criteria that impact an applicant's eligibility for a hard money real estate loan can include how much money he is able to put into a down payment, his previous experience as a real estate investor, and price of comparative, just recently sold homes in the vicinity.
So any time you run into an outstanding and lucrative flipping opportunity, relax knowing you'll have a hard money lender in Pleasant Prairie, in a position to lend you the money you need. Complete the contact form on this page or call us to talk about the property you have in mind.
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