Hard Money Loans in Abilene
Suppose you've come across this really great deal on a fix and flip property in a terrific neighborhood, and you're either a seasoned real estate investor or a newbie who hopes to try out flipping houses. Most folks know that capable professional flippers, like Tarek and Christina El Moussa from HGTV's reality home flipping series, Fix or Flop, are able to make an average profit margin of forty to fifty thousand dollars when they flip properties. Without question, their past experiences rehabbing, understanding of hard money loans, expertise in their housing market, and auction skills have had a big role in their results. On the other hand, you're convinced that your first class rehab and remodeling talents will help you do a quality job on the property — additionally, you have already lined up one of the best general contractors in the business to take on the job.
But how exactly do real estate investors get financing? A typical lending institution, like for example a bank, takes at a minimum one to two months to consent to the financing and release the cash. Thus if you happen to be wishing for a fast closing, you have to be aware that this could set you back by a couple weeks, causing you to miss out on the opportunity.
To add to it, banks have already been tightening their lending criteria in recent years, which makes it difficult for someone to get a regular home loan if their credit rating is not flawless or he does not possess a consistent salaried occupation. So must you admit defeat and forego your ambition to venture into real estate? Never, considering that you can always go the Abilene hard money loan route to fund your flipping project.
If you should obtain a hard money home loan in Abilene, you're going to get what is probably most important to real estate offers across the country — a quick closing of about 2 weeks. In addition, the LTV value can reach up to 70% of the home value, as determined by a competent appraiser. A number of people believe hard money real estate loans to be higher priced than standard financing, since the interest rates for such loans usually start at 10%. But once you understand these loans are not long-term loans, the rate may be misleading. When it comes to short-term loans of several years or less, you should think about them similar to any other expenditure for the project. And when you have finally sold the house, recuperating this expense is identical to recovering the expense for the bathroom upgrades you performed.
Besides, hard money mortgages are easy qualifying, even when you have less-than-perfect credit. The person's credit score will not be the exclusive determining factor for Abilene hard money lenders — they also examine the property, its market value, its location, and its capability to bring back their investment if everything does not work out as planned. Other factors that influence an applicant's eligibility for a hard money real estate loan include how much he is able to put into a down payment, his past experience being a real estate investor, and selling price of similar, fairly recently sold homes in the neighborhood.
So in the event you run into a really good and profitable flipping opportunity, feel comfortable knowing you will have a hard money lender in Abilene, ready to lend you the cash you may need. Fill out the contact form or get in touch with us via phone to discuss your property or properties.
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