Hard Money Loans in Acworth
A fantastic deal on a fix and flip opportunity in a very good subdivision suddenly turns up — sounds so good that it is hard to believe. Expert residential home flippers, such as the young married couple on Flip or Flop, HGTV's reality flipping program, are capable of earning a profit of $40-$50k on average. And indeed, they are aided in a big way by their professional knowledge, auction abilities and knowledge of hard money loans. Nonetheless, your rehab and remodeling skills aren't bad either — aside from that, you have already located an ideal general contractor to take on this job.
But money is often a separate problem entirely. Should you approach a regular lender, like a bank for financing, it can take, at the very least, 4-8 weeks for the acceptance to be completed and the money to be distributed. With the sellers seeking a fast closing, that does not appear like a good option to you at all.
With banks introducing tougher loan criteria in the past several years, it has become tougher for a self-employed person to find a mortgage loan, especially when his credit rating is not optimal. So will a shortage of funds keep you from pursuing your ambitions? By no means, particularly when Acworth hard money loans can help you realize great things in the real estate world.
A hard money home loan in Acworth promises what is probably most important to real estate investors — a fast closing in as little as two weeks. Further, loan amounts are made up to 70% loan-to-value of the as-is valuation, as determined by a professional appraiser. With interest rates starting out at about 10%, hard money real estate loans may seem, at first glance, to be higher priced compared to traditional bank financing. But when you consider these are not long-term loans, the interest rate tends to be misleading. Short-term loans of a couple of months to a handful of years are best looked at in terms of cost of capital, very much like every other financial outlay in connection with a project. And once you've flipped the home, recuperating this expense is the exact same as recouping the expense for the bathroom improvements you performed.
Also, it is simple to qualify for a hard money mortgage, regardless of whether your credit score is not that great. Acworth hard money lenders do not authorize a loan strictly judging by the person's credit score — rather they additionally evaluate the property or home, its valuation and location, and the property's capability to pay back the financing independent of the person. How much money an individual can put down beforehand towards the property, how much practical experience he has in real estate investments, and price range of comparative properties in the area are various other details that go into determining an applicant's qualification for a hard money real estate loan.
So should you run into an outstanding and lucrative flipping opportunity, feel comfortable knowing you'll have a hard money lender in Acworth, prepared to lend you the capital that you need. Enter your info into the form or call us and let's talk about the project you have in mind.
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