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There is this phenomenal opportunity to fix and flip this wonderful old house in a very good area and it seems a lot like the deal you have been expecting for quite a while. You've heard that competent home flippers, like the married couple on HGTV's Flip or Flop, turn a remarkable average return close to forty to fifty thousand dollars. And indeed, they are aided in a big way by their professional experience, auction skills and knowledge of hard money loans. Nevertheless, you're assured that your impressive rehab and remodeling talents can help you do a superb job on the home — additionally, you already have arranged to have one of the best contractors in the area to take on this project.
But how can you get the necessary financing for flipping? In the event you opt for an ordinary bank loan, you will have to wait approximately 4-8 weeks until the mortgage is authorized and your funding is ready to go. Thus if you happen to be anticipating a fast closing, you have to be aware that this may cost you a couple weeks, causing you to miss out on the home.
On top of this, banks have already been tightening up their lending criteria as of late, making it difficult for someone to receive a traditional loan if their credit situation is not flawless or he does not have a regular salaried job. So will a shortage of financing keep you from pursuing your dream? Never, because you can always go the Arkansas hard money loan route to pay for your home flipping project.
If you decide to get a hard money home loan in Arkansas, you're going to get what's perhaps most vital to real estate purchases across the country — a very fast closing of approximately a couple weeks. Plus, the LTV value can range up to 70% of the place's valuation, as determined by a credentialed appraiser. At first glance, hard money real estate loans, with starting interest rates of 10%, could be seen as more pricey than bank lending products. But when you consider these loans are not long-term mortgage loans, the rate of interest can be misleading. Short-term loans of a couple of months to a handful of years are best thought of as cost of capital, the same as every other financial outlay involved with a project. After you remodel and sell off the house, recouping this expense is no different than recovering the cost of the home appliances you placed into the place.
Additionally, it's simple to obtain a hard money mortgage, even in the event your credit score is not that extraordinary. Arkansas hard money lenders don't authorize a loan strictly based on the customer's credit score — instead they will examine the property or home, its location and value, and the property's ability to pay back the loan on its own. The amount that an individual can put upfront towards the house, how much practical experience he has in real estate investing, and price range of comparative properties in the vicinity are various other factors that go into determining a borrower's eligibility for a hard money real estate loan.
If you happen to have found a really good fixer-upper with a significant chance of returns, you've also found yourself a hard money lender in Arkansas who's prepared to fund your rehab projects. Complete the contact form on this page or call us to talk about your property.
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