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An outstanding buy on a fix and flip opportunity in a good neighborhood shows up out of the blue — seems so good that it is difficult to believe. You may have heard that professional home flippers, like the husband and wife on HGTV's Flip or Flop, have a remarkable average return of around forty to fifty thousand dollars. Naturally, you also understand that their successes can be attributed to the simple fact that they're industry experts, are proficient in hard money loans, they know the marketplace quite well and additionally, they are good at working an auction to buy their properties at a reasonable deal. With that being said, you have also been brushing up your rehab and renovation knowledge, have got a building contractor ready to go and are certain that you can do a stellar job for this property.
But how can real estate investors find capital? When you get in touch with a customary lender, much like a bank for funding, it's more than likely going to take, at a minimum, 4-8 weeks for your approval to come through and the money to be dispersed. Thus if you happen to be anticipating a fast closing, you must understand that this may cost you a few weeks, causing you to lose out on the sale.
Furthermore, if you have a less-than-perfect credit situation or don't receive a regular income source, it is usually harder for you to obtain bank financing, seeing the stricter loan guidelines banks have issued lately. So should you admit defeat and abandon your ambition to embark into the real estate market? Certainly not, because you also have the Mississippi hard money loan alternative.
A hard money home loan in Mississippi provides what is probably most crucial to real estate investors — a very fast closing in as few as a few weeks. And additionally, financing is made up to 70% loan-to-value of the as-is home's valuation, as deemed by a licensed appraiser. At first, hard money real estate loans, with starting interest rates of 10%, could be seen as more pricey than bank lending options. But the time frames of these loans are rather short, which means the rate is less significant. When it comes to short-term loans of a handful of years or less, you should think of them much like you would other expenses for the project. Once you have resold the property and have made a successful return, you're able to reclaim this expense from the property or home — similar to recouping the money necessary for the brand-new home appliances that you have installed.
Furthermore, even an individual with bad credit will be able to qualify for a hard money mortgage. Instead of focusing entirely on the applicant's credit score or income, Mississippi hard money lenders, who could be a privately owned company or an individual, authorize a loan as a result of evaluating the property value, how easy it will be to market, its location, and the odds of recouping their capital in the event of foreclosure. Adding to that, if the applicant have proven experience in similar real estate endeavors, can place down money for a down payment, and the price of equivalent houses in the area works in his favor, he has got a good shot of being approved to obtain a hard money real estate loan.
So any time you run into an outstanding and profitable flipping opportunity, feel comfortable knowing you'll have a hard money lender in Mississippi, equipped to lend you the cash that you need. Complete the contact form on this page or call us and let's talk about your property.
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