Hard Money Loans in Shoreline
Imagine you've come across this truly good deal for a fix and flip property in an ideal neighborhood, and you happen to be either a seasoned real estate investor or a first-timer who wants to try his hand at flipping. Everybody knows that knowledgeable professional flippers, along the lines of Tarek and Christina El Moussa from HGTV's reality flipping show, Fix or Flop, are able to turn an average profit margin of $40,000 to $50,000 in their rehab business. Undoubtedly, you also understand that their great results can be attributed to the fact that they're professionals, are well versed in hard money loans, they understand the market quite well and they also are good at working a public auction for getting a good deal. However, you're assured that your impressive rehab and renovation knowledge can help you do an outstanding job for this property — additionally, you already have lined up one of the finest general contractors in the business to take on this job.
But where precisely do real estate investors find money? In the event you go after an ordinary bank loan, you will need to wait around approximately 4-8 weeks up until the time the mortgage loan is authorized and your money is available. So if you are expecting a fast closing, you need to realize that this could set you back by a few weeks, making you lose out on the opportunity.
On top of this, banks have already been tightening their lending requirements in recent years, which makes it tough for a person to obtain a typical home loan if their credit rating is not flawless or he does not have a regular salaried profession. So should you give up and abandon your desire to embark into fix and flips? Certainly not, considering that you can always use the Shoreline hard money loan approach to pay for your rehab project.
A hard money home loan in Shoreline offers you what is viewed as crucial to most real estate transactions — a quick closing of just a few weeks and more often than not less. And additionally, loan amounts are made up to 70% loan-to-value of the "as is" house value, as determined by a qualified appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, could be seen as higher in price than bank loans. But in reality, the rate of interest is not as relevant for these loans, since they are not long-term financing. Short-term loans of several months to a few years are best understood as cost of capital, very much like all other costs in connection with a project. Right after you rehab and resell the property, recovering this expense is the same as recuperating the cost of the home appliances you placed into the place.
Apart from this, hard money mortgages are not difficult to qualify for, even in the event you posses very bad credit. Shoreline hard money lenders do not approve a loan solely based on the person's credit score — rather they also look at the home, its value and location, and the property's capability to pay back the financing without the help of the applicant. Other variables that affect a person's acceptance for a hard money real estate loan include the amount he is in a position to put towards a down payment, his former experience as a real estate investor, and price range of similar, just recently sold residences in the neighborhood.
If you happen to have stumbled on a wonderful home to flip with a high potential for returns, you've also found yourself a hard money lender in Shoreline who is ready to finance your flipping projects. Fill out the form on this page or get in touch with us via phone to discuss the property or properties you have in mind.