Hard Money Loans in Lakewood
Suppose that you've come across this really great deal on a fix and flip property located in a great neighborhood, and you happen to be either an experienced real estate investor or a newbie who really wants to try his hand at flipping. Everybody knows that capable professional flippers, like Tarek and Christina El Moussa who do HGTV's reality flipping series, Fix or Flop, can generate a typical profit margin of $40,000 to $50,000 when they rehab properties. Without question, their rehabbing experience, understanding of hard money loans, familiarity with the market, and auction talents have had an important role in their results. Having said that, you've likewise been brushing up your rehab and renovation knowledge, have a very good contractor lined up and are positive that you will be able to do an impressive job on this house.
But where precisely can real estate investors find financing? In the event you apply for a conventional bank loan, you will wind up waiting approximately 4-8 weeks up until the time the mortgage loan is approved and your funds are accessible. Since most home owners would rather have a fast closing, you might have to begin searching for other funding alternatives.
On top of this, banks have been tightening their lending requirements in recent times, making it difficult for a person to get a conventional home loan if their credit rating is not perfect or he is lacking a regular salaried profession. So does this mean you have no option, but to abandon your ambition of getting into the fix and flip business? Never, because you can always use the Lakewood hard money loan approach to fund your home renovating project.
A hard money home loan in Lakewood offers what's viewed as imperative to most real estate sales — a fast closing of just a couple of weeks and at many times even less. Further, financing can be done for up to 70% loan-to-value of the "as is" value, as established by a qualified appraiser. With the rates starting out at about 10%, hard money real estate loans may look, initially, to be more expensive as compared with conventional bank lending products. But when you consider these loans are not long-term home loans, the rate of interest can be misleading. When it comes to short-term loans of several years or even less, you should look at them just like you would other expenses for the project. And once you've finally turned the property or home, recouping this expense is comparable to recouping the expense for the bathroom updates you performed.
In addition, even someone with low credit can still qualify for a hard money mortgage. Lakewood hard money lenders don't take on a loan strictly based on the customer's credit score — instead they also evaluate the property, where it is located and what it is worth, and the property's capability to pay back the loan independent of the applicant. Adding to this, if the person have proven experience in comparable real estate ventures, can place down money for the down payment, and the price of comparable homes in the area works in his favor, he stands a good shot of qualifying to get a hard money real estate loan.
So in case you have stumbled on a really good fixer-upper with a significant probability of returns, you have also stumbled upon a hard money lender in Lakewood that's willing to fund your fix and flip projects. Submit the contact form on this page or call us to talk about your property or properties.