Hard Money Loans in 78478
A fantastic deal on a fix and flip opportunity located in a good neighborhood shows up out of the blue — seems so good that it is difficult to believe. Everyone knows that knowledgeable professional flippers, such as Tarek and Christina El Moussa who do HGTV's reality home flipping show, Fix or Flop, are able to earn a typical profit of $40,000 to $50,000 when they flip properties. And sure, they are helped in a major way as a result of their professional know-how, auction expertise and understanding of hard money loans. On the other hand, you are assured that your first class rehab and remodeling skills will assist you to do a superb job on the house — additionally, you have already arranged to have one of the most sought after building contractors in the area to take on this project.
But where can real estate investors get capital? A conventional lending institution, say for example a bank, takes a minimum of one to two months to approve the mortgage and provide the funds. With the home owners seeking a fast closing, that doesn't seem like a good idea to you in the slightest.
With banks establishing tougher loan guidelines in the past several years, it is tougher for a self-employed person to get a mortgage loan, particularly if his credit rating is not flawless. So does that leave you with no option, but to abandon your ambition to venture into home renovating? Not at all, especially while 78478 hard money loans enable you to realize many amazing things in real estate.
When you obtain a hard money home loan in 78478, you will get what's perhaps most important to real estate purchases throughout the country — a fast closing of about fourteen days. What's more, the LTV value can reach up to 70% of the property value, as evaluated by a credentialed appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, seem to be costlier than bank loans. But usually, the lending rate isn't as useful a measure for these loans, given that they are not long-term financing. Short-term loans of a couple months to a few years are best looked at in terms of cost of capital, the same as any other expense related to a project. And when you've finally sold the home, recovering this expense is comparable to recovering the expense for the bathroom or other improvements you did.
What's more, it's easy to obtain a hard money mortgage, even in the event your credit rating is not that extraordinary. Rather than focusing solely on the borrower's credit score or source of income, 78478 hard money lenders, who could be a private company or an individual person, approve a loan as a result of examining the home value, its salability, its location, and the possibility of getting back their money in case of foreclosure. How much money a person can put upfront for the house, how much practical experience he has in real estate investments, and selling price of equivalent properties in the same area are various other details that go into analyzing an individual's suitability for a hard money real estate loan.
So if you have found a really great real estate opportunity with a significant potential for returns, you have also found yourself a hard money lender in 78478 that is prepared to provide funding for your fix and flip project. Complete the contact form or call us and let's discuss your property or properties.
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