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There's this outstanding possibility for rehabbing and flipping this wonderful old property in a very good location and it seems like the one you've been wanting for a long time. Professional home flippers, like the young married couple on Flip or Flop, HGTV's reality flipping show, are able to generate a profit of forty to fifty grand on average. It's fair to say their past experiences rehabbing, understanding of hard money loans, familiarity with the housing market, and auction skills have been major factors to their results. Still, your rehab and renovation skills aren't bad either — besides, you've already found a suitable building contractor to handle the project.
But how do you get the needed capital for home flipping? For those who meet with a customary lending institution, such as a bank for financing, it can take, at the very least, thirty to sixty days for the approval to come through and the funds to be accessible. Since the majority of home owners wish to have a fast closing, you may have to begin searching for some other funding alternatives.
With banks introducing tougher loan requirements in recent years, it's become tougher for a self-employed person to get a mortgage loan, particularly if his credit score is not flawless. So will a shortage of financing prevent you from following your ambitions? Certainly not, because you always have the Virginia hard money loan option.
A hard money home loan in Virginia provides what is perhaps most sought after by real estate investors — a quick closing time of as few as 2 weeks. Besides that, hard money lenders frequently agree to lending up to 70% LTV of the home value, as determined by a certified third-party evaluation. At first glance, hard money real estate loans, with starting interest rates of 10%, seem to be more expensive than bank lending options. But once you appreciate that these are not long-term home loans, the rate may be misleading. The cost of such short-term loans should be evaluated much like any other expense that you would encounter during the project. When you have turned the home and have made a good profit, you'll be able to recover this expense from the home — the same as recouping the money necessary for the brand-new appliances for the kitchen that you've installed.
Apart from this, hard money mortgages are not difficult to qualify for, regardless if you have less-than-perfect credit. The borrower's credit score will not be the primary determining factor for Virginia hard money lenders — additionally, they evaluate the property, how much it is worth, its location, and its ability to earn back their financial commitment if everything does not work out as planned. How much of their own money a person can put down beforehand for the property or home, how much experience he has in real estate investing, and selling price of comparative properties in the same vicinity are additional factors that go into analyzing an individual's eligibility for a hard money real estate loan.
So should you run into a really good and worthwhile investment opportunity, rest assured you'll have a hard money lender in Virginia, equipped to lend you the cash you may need. Complete the form on this page or call us and let's talk about the property you have in mind.
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