Hard Money Loans in St Louis Park
There is this phenomenal opportunity to rehab and flip this nice old house in a good area and it seems like the deal you've been eagerly waiting on for a long time. You've heard that veteran home flippers, like the married couple on HGTV's Flip or Flop, have a remarkable average profit near forty to fifty thousand dollars. And indeed, they are aided in a major way due to their professional experience, auction expertise and knowledge of hard money loans. With that being said, you've likewise been cultivating your rehab and renovation skills, have got a licensed contractor lined up and are confident that you will be able to do an impressive job on this home.
But how can you obtain the necessary financing for flipping? When you apply for a regular loan via a bank, you will end up waiting somewhere around 30-60 days until the money is approved and your funding is ready. Thus if you happen to be anticipating a fast closing, you must recognize that this will set you back by weeks, making you miss out on the home.
Furthermore, for those who have a sub-optimal credit score or do not have a regular income, it usually is more difficult for you to qualify for a bank loan, considering the tougher loan criteria banks have put in place recently. So does this leave you with no other option, but to give up your aspiration to venture into rehabbing? Most certainly not, seeing as you also have the St Louis Park hard money loan option.
A hard money home loan in St Louis Park can provide what is viewed as essential to most real estate deals — a very fast closing of just a couple of weeks and sometimes even less. Furthermore, hard money lenders frequently agree to funding up to 70% LTV of the property or home value, as assessed by a certified third-party evaluator. With loan rates starting near 10%, hard money real estate loans might appear, at first, to be higher priced when compared with conventional bank lending products. But usually, the rate of interest is not as pertinent for these loans, given that they aren't long-term loans. Short-term loans of several months to a handful of years are best approached as cost of capital, the same as every other expense involved with a project. After you rehab and resell the home, recouping this expense is no different than recovering the money you spent for stainless steel appliances you placed into the place.
Furthermore, even an individual with low credit will be able to be eligible for a hard money mortgage. St Louis Park hard money lenders don't authorize a loan solely based on the customer's credit score — rather they additionally analyze the home, its location and value, and the property's capability to pay back the loan on its own. Several other variables that influence a customer's eligibility for a hard money real estate loan can include how much money he is able to put towards a down payment, his former experience being a real estate investor, and price range of comparable, just recently sold properties in the neighborhood.
So in case you have stumbled upon a really good fixer-upper with a significant potential for returns, you've also stumbled upon a hard money lender in St Louis Park who is willing to provide funding for your flipping projects. Complete the contact form or give us a call to talk about the property or properties you have in mind.
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