Hard Money Loans in Aberdeen
A remarkable buy on a fix and flip property located in a very good area of the city shows up out of the blue — sounds so good that it is hard to believe. A majority of people know that knowledgeable professional flippers, along the lines of Tarek and Christina El Moussa from HGTV's reality flipping program, Fix or Flop, can readily turn an average profit margin of forty to fifty thousand dollars when they flip properties. Undoubtedly, you also know that their successes are due to the simple fact that they're professionals, are well versed in hard money loans, they understand market trends really well and they also are good at working a public auction to buy their properties at a good price. However, you are certain that your first class rehab and renovation knowledge will assist you to do a great job on this house — additionally, you already have arranged to have one of the finest general contractors in town to handle the project.
But capital is a different question entirely. A standard lender, for instance a bank, takes at a minimum 1 to 2 months to approve the loan and provide the money. So if you're expecting a fast closing, you must realize that this could set you back by a few weeks, causing you to miss out on the home.
As well as this, in case you have a less-than-perfect credit rating or do not receive a regular income, it can be tougher for you to obtain bank financing, considering the stricter loan criteria banks have issued of late. So do you have to admit defeat and abandon your ambition to get into real estate? Most certainly not, because you always have the Aberdeen hard money loan option.
If you should apply for a hard money home loan in Aberdeen, you're going to get what's perhaps most vital to real estate transactions across the country — a very fast closing of about 2 weeks. Also, hard money lenders can do funding up to 70% LTV of the property or home's valuation, as identified by a qualified third-party appraiser. Some people regard hard money real estate loans to be costlier than customary loans, because the interest rates of such loans ordinarily start at 10%. But the lengths of these loans are much shorter, making the interest rate far less important. Short-term loans of several months to a few years are best thought of in terms of cost of capital, much like every other expense related to a project. Once you have sold the house and have made a positive gain, you can reclaim this expense from the property or home — similar to recovering the cost of brand-new home appliances that you installed.
Apart from this, hard money mortgages are not difficult to qualify for, whether or not you have got less-than-perfect credit. Rather than focusing strictly on the applicant's credit score or source of income, Aberdeen hard money lenders, who can be a private company or an individual, say yes to a loan after assessing the home value, how easy it will be to market, where it is located, and the possibility of recovering their capital if they have to foreclose the loan. The total amount that a borrower can put upfront towards the property or home, how much experience he has in real estate investing, and price range of comparative homes in the area are various other details that go into analyzing an applicant's suitability for a hard money real estate loan.
Searching for a hard money lender in Aberdeen to finance your real estate project is not very hard, assuming that the opportunity that lies ahead of you is promising and possesses the right potential for returns. Fill out the contact form on this page or call us and let's talk about the property you have in mind.
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