Hard Money Loans in Wausau
Imagine you've stumbled upon this excellent bargain on a fix and flip property located in a great neighborhood, and you are either a seasoned real estate investor or a newbie who really wants to try out flipping houses. Many people know that knowledgeable professional flippers, such as Tarek and Christina El Moussa who star in HGTV's reality flipping series, Fix or Flop, can turn a typical profit margin of $40,000 to $50,000 on their flips. Undoubtedly, you also realize that their successes can be attributed to the fact that they're professionals, are well versed in hard money loans, they understand market trends quite well and furthermore, they are good at working a public auction for getting a good deal. Nonetheless, your rehab and renovation skills aren't that bad either — besides, you have already located an ideal contractor to tackle the job.
But where do you find the necessary financing for flipping? A traditional lender, say for example a bank, takes a minimum of 1 to 2 months to approve the mortgage and hand over the funds. Since most home owners would rather have a fast closing, it may be best to begin searching for additional funding alternatives.
With banks adding tougher loan guidelines in recent years, it has become harder for a self-employed person to obtain a home loan, especially if his credit circumstances are not optimal. So will a lack of financing keep you from following your dream? Not at all, especially when Wausau hard money loans will assist you to realize many amazing things in the real estate market.
If you get a hard money home loan in Wausau, you will get what is perhaps most important to real estate purchases across the country — a fast closing of around a couple weeks. Furthermore, hard money lenders will often consent to funding up to 70% LTV of the property or home value, as assessed by a professional third-party appraiser. With rates starting off at about 10%, hard money real estate loans might seem, at first, to be more costly in comparison with traditional bank lending products. But the term lengths for these loans are fairly short, which means the interest rate is less significant. The price of such short-term loans should be viewed much like any other cost that you would need to meet for the project. When you have turned the home and have made a successful return, you're able to get back this expense from the home — very much like recovering the money necessary for the brand-new kitchen appliances that you installed.
What's more, it's easy to be eligible for a a hard money mortgage, even if your credit score is not that impressive. Wausau hard money lenders do not authorize a loan solely according to the borrower's credit score — instead they additionally analyze the home, where it is located and what it is worth, and the property's capability to pay back the loan without the help of the person. Several other criteria that influence an applicant's approval for a hard money real estate loan include what amount of money he can put towards a down payment, his previous experience being a real estate investor, and price of comparable, fairly recently sold homes in the area.
So in the event you run into an outstanding and worthwhile investment opportunity, relax knowing you'll have a hard money lender in Wausau, willing to loan you the cash you need. Enter your info into the contact form or give us a call to talk about your project.
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