Hard Money Loans in Canadian
Suppose that you've run across this excellent bargain on a fix and flip property you found in an ideal location, and you're either a seasoned real estate investor or a newbie who hopes to try his hand at flipping. A majority of people know that capable professional flippers, such as Tarek and Christina El Moussa who star in HGTV's reality flipping show, Fix or Flop, can make an average profit margin of $40,000 to $50,000 on their home projects. Without question, their past experiences rehabbing, understanding of hard money loans, expertise in their market, and auction talents have played a significant role in their results. Still, your rehab and renovation skills aren't that bad either — besides, you have already located an ideal building contractor to handle the home.
But how do you get the needed funding for flipping? When you go after a traditional loan from the bank, you will end up waiting roughly 30-60 days until the money is approved and the funds are accessible. Because most sellers would prefer a fast closing, you might want to start looking for other financing options.
On top of this, banks have already been tightening up their lending standards in recent years, rendering it more difficult for a person to get a conventional home loan if their credit situation is not perfect or he does not have a consistent salaried profession. So do you have to give up and abandon your ambition to venture into real estate? Certainly not, due to the fact you could always use the Canadian hard money loan approach to fund your flipping project.
A hard money home loan in Canadian offers what's considered vital to many real estate deals — a very fast closing of only a few weeks and more often than not even less. Also, hard money lenders frequently agree to lending up to 70% LTV of the property or home's valuation, as calculated by a qualified third-party appraiser. Some people regard hard money real estate loans to be more costly than regular financing, considering lending rates for these loans often start out at 10%. But the time frames of these loans are quite shorter, which makes the interest rate less significant. The price of such short-term loans should be looked at on par with every other cost that you will have to meet for the project. Once you have turned the house and have made a good return, you're able to get back this expense from the property or home — much like recovering the cost of brand-new home appliances that you have installed.
Additionally, it's simple to obtain a hard money mortgage, even if your credit score is not that impressive. Rather than focusing solely on the applicant's credit score or net income, Canadian hard money lenders, who can be a private company or an individual person, say yes to a loan after analyzing the home value, ease of marketability, its location, and the possibility of getting back their money in case of foreclosure. On top of that, if the borrower can demonstrate prior experience in comparable real estate ventures, can put down money towards the down payment, and the cost of comparative homes in the area works to his benefit, he has got a good chance of qualifying for a hard money real estate loan.
So if you have stumbled on a wonderful home to flip with a high probability of returns, you've also found yourself a hard money lender in Canadian that is willing to provide financing for your fix and flip ventures. Enter your info into the contact form on this page or call us to discuss the project you have in mind.