Hard Money Loans in Abbeville
Suppose that you've run into this really great deal on a fix and flip property located in an ideal neighborhood, and you're either a seasoned real estate investor or a newbie who hopes to try his hand at flipping. Professional property flippers, much like the young married couple on Flip or Flop, HGTV's reality flipping program, are able to bring in a gain of forty to fifty grand for most homes. It's fair to say their past experiences rehabbing, understanding of hard money loans, expertise in their housing market, and auction talents have played an important role in their successes. Nevertheless, you are assured that your first class rehab and renovation knowledge will help you do an outstanding job for this property — additionally, you already have lined up one of the best building contractors in the area to take care of the job.
But funding can be a different issue altogether. A traditional lender, for instance a bank, takes a minimum of 1-2 months to consent to the financing and deliver the capital. Because most home owners favor a fast closing, you might have to start seeking out other financing alternatives.
On top of this, banks have been tightening up their lending requirements in recent years, making it difficult for a person to receive a conventional home loan if their credit situation is not flawless or he does not have a consistent salaried job. So should you admit defeat and forego your ambition to get into fix and flips? Most certainly not, because you also have the Abbeville hard money loan alternative.
A hard money home loan in Abbeville boasts what's possibly most important to real estate investors — a very fast closing in as few as fourteen days. In addition, the LTV value can go up to 70% of the property value, as evaluated by a credentialed appraiser. At first glance, hard money real estate loans, with starting interest rates of 10%, appear to be higher in price than bank lending options. But the lengths of these loans are comparatively short, making the interest rate less significant. Short-term loans of a couple of months to a handful of years are best approached as cost of capital, similar to every other expense involved with a project. When you have turned the home and have made a successful profit, you're able to reclaim this expense from the home — very much like recovering the money spent on the brand-new kitchen appliances that you've installed.
Aside from that, hard money mortgages are not difficult to qualify for, even when you have got below-average credit. Abbeville hard money lenders do not approve a loan exclusively according to the borrower's credit score — rather they additionally assess the property or home, where it is located and how much it is worth, and the home's ability to pay back the financing without the assistance of the applicant. Adding to this, if the person can demonstrate prior experience in equivalent real estate ventures, can put down money towards the down payment, and the value of comparative homes in the neighborhood works in his favor, he has got a really good chance of being approved for a hard money real estate loan.
If you happen to have stumbled on a really great home to flip with a high prospect of returns, you have also stumbled upon a hard money lender in Abbeville that is ready to provide funding for your rehab ventures. Fill out the contact form on this page or give us a call and let's talk about your property.
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