Hard Money Loans in Superior
You discovered this amazing opportunity to fix and flip this nice out of date property in a fantastic area and it seems a lot like the one you've been looking forward to for quite a while. A majority of people know that expert professional flippers, along the lines of Tarek and Christina El Moussa who star in HGTV's reality home flipping series, Fix or Flop, can readily earn a typical profit margin of $40,000 to $50,000 when they rehab properties. And yes, they are helped in a big way by their professional know-how, auction abilities and understanding of hard money loans. With that being said, you have recently been cultivating your rehab and renovation knowledge, have a very good building contractor lined up and are positive that you can do a stellar job for this property.
But how can you get the needed capital for flipping? If you apply for a traditional bank loan, you will need to wait around approximately 1-2 months until eventually the mortgage loan is authorized and your funding is available. Thus if you are anticipating a fast closing, you must be aware that this could set you back by a couple weeks, making you miss out on the sale.
What's more, should you have an unfavorable credit situation or don't have a routine source of income, it is usually tougher for you to qualify for bank financing, with the more stringent loan guidelines banks have issued of late. So will a shortage of funds prevent you from sticking to your aspirations? By no means, particularly while Superior hard money loans can help you realize many amazing things in real estate.
A hard money home loan in Superior offers what is considered imperative to many real estate transactions — a fast closing of just a couple of weeks and oftentimes less. Furthermore, hard money lenders are able to do loans up to 70% LTV of the property or home value, as estimated by a professional third-party evaluation. On the surface, hard money real estate loans, with starting interest rates of 10%, could be seen as more expensive than bank lending options. But if you consider these are not long-term loans, the rate tends to be misleading. When it comes to short-term loans of one or two years or less, you should think about them identical to any sort of other expenditure for your project. After you remodel and resell the property, recuperating this expense is the same as recuperating the one for new kitchen appliances you put in the house.
In addition, even individuals with weak credit can still qualify for a hard money mortgage. The applicant's credit score is not the single deciding factor for Superior hard money lenders — they also consider the house, how much it is worth, where it is located, and its capacity to return their financial commitment if things do not go as intended. The amount that a borrower can put upfront for the property, his real estate experience, and price range of equivalent homes in the vicinity are various other details that go into establishing an applicant's qualification for a hard money real estate loan.
So should you come across an outstanding and worthwhile flipping opportunity, rest assured you'll have a hard money lender in Superior, prepared to loan you the cash you will need. Fill out the contact form on this page or give us a call to talk about the property you have in mind.
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