Hard Money Loans in Simpsonville
Suppose that you've run into this really great deal on a fix and flip property you found in a terrific location, and you are either a seasoned real estate investor or a newbie who wants to try out flipping houses. You've heard that veteran home flippers, similar to the married couple on HGTV's Flip or Flop, turn a remarkable average profit near forty to fifty thousand dollars. And indeed, they are helped in a major way due to their professional know-how, auction skills and familiarity with hard money loans. Nonetheless, your rehab and renovation knowledge isn't that bad either — aside from that, you've already found a suitable contractor to take on this home.
But financing can be a different issue altogether. When you opt for a normal loan via a bank, you will need to wait around approximately 1 to 2 months until the mortgage loan is approved and the money is available. So if you're looking for a fast closing, you have to be aware that this may cost you a couple of weeks, causing you to miss out on the house.
With banks bringing in tougher loan criteria in recent times, it's become tougher for a self-employed person to get a mortgage loan, especially if his credit situation is not perfect. So do you have to give up and forego your desire to embark into the real estate market? Certainly not, given that you always have the Simpsonville hard money loan alternative.
A hard money home loan in Simpsonville provides you with what's probably most important to real estate investors — a quick closing time of as little as 2 weeks. Plus, the LTV value can reach up to 70% of the property value, as determined by a credentialed appraiser. Some people regard hard money real estate loans to be more pricey than regular financing, considering interest rates for such loans commonly start off at 10%. But usually, the rate of interest isn't as useful a measure for these loans, simply because they will never be long-term loans. The price tag on such short-term loans should be looked at much like every other expense that you would encounter in the course of the project. Right after you renovate and unload the house, recovering this expense is the same as recovering the money you spent for home appliances you put in the place.
Apart from this, hard money mortgages are not difficult to qualify for, even in the event you posses a low credit rating. The person's credit score is not the exclusive determining factor for Simpsonville hard money lenders — in addition, they look at the home, its market valuation, where it is located, and its potential to return their investment if everything does not go as planned. Adding to that, if the applicant can demonstrate prior experience in comparable real estate projects, can put down money for a down payment, and the price of comparable houses in the vicinity works in his favor, he stands a very good likelihood of being eligible to obtain a hard money real estate loan.
So should you come across a good and worthwhile investment opportunity, relax knowing you will have a hard money lender in Simpsonville, willing to lend you the money you need. Submit the contact form or give us a call and let's discuss the project you have in mind.
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