Hard Money Loans in Ohio

A remarkable deal on a fix and flip property located in a good subdivision all of a sudden shows up — seems so good that it's difficult to believe. You've probably heard that veteran house flippers, like the married couple on HGTV's Flip or Flop, enjoy an impressive average profit of around forty to fifty thousand dollars. And yes, they are helped in a big way via their professional knowledge, auction expertise and understanding of hard money loans. However, you're certain that your first class rehab and renovation abilities will assist you to do a superb job on this house — furthermore, you've already lined up one of the premier general contractors in town to handle this job.

But how do real estate investors find money? When you go after an ordinary loan from the bank, you will have to wait around somewhere around 1 to 2 months before the loan is authorized and the funds are ready. Thus if you are wishing for a fast closing, it's important to realize that this may set you back by a couple weeks, making you lose out on the opportunity.

On top of this, banks have been tightening up their lending standards in recent years, rendering it more hard for people to get a regular home loan if their credit situation is not flawless or he does not possess a regular salaried job. So should you admit defeat and abandon your desire to venture off into real estate? Certainly not, considering that you could always use the Ohio hard money loan approach to finance your rehab project.

A hard money home loan in Ohio provides what is considered imperative to most real estate transactions — a quick closing of only a 2-3 weeks and more often than not even less. Besides that, hard money lenders can do funding up to 70% LTV of the property's valuation, as estimated by a professional third-party evaluation. With lending rates starting out near 10%, hard money real estate loans may look, at first glance, to be higher in price as compared with traditional bank financing. But the lengths of these loans are quite shorter, making the rate far less significant. The price tag on such short-term loans ought to be evaluated on par with every other cost that you will have to meet pertaining to the project. And as soon as you have finally turned the property, recovering this expense is identical to recouping the expense for all the kitchen and bath upgrades you did.

What's more, it is simple to be eligible for a hard money mortgage, even when your credit situation is not that superb. Ohio hard money lenders do not authorize a loan solely on the basis of the borrower's credit score — rather they will evaluate the home, where it is located and what it is worth, and the home's ability to pay back the financing by itself. Several other factors that impact a person's eligibility for a hard money real estate loan can include how much he is able to put into a down payment, his previous experience being a real estate investor, and selling price of comparable, recently sold residences nearby.

Finding a hard money lender in Ohio to fund your flipping business is not very challenging, as long as the opportunity in front of you is promising and has the right potential for returns. Complete the form on this page or give us a call to discuss the property you have in mind.