Hard Money Loans in Alabaster
An outstanding bargain on a fix and flip opportunity located in an excellent neighborhood shows up out of the blue — sounds too good to be true. Many people know that skilled professional flippers, like Tarek and Christina El Moussa who do HGTV's reality flipping program, Fix or Flop, are able to earn a typical profit margin of forty to fifty thousand dollars in their rehab business. And yes, they are helped in a major way by their professional experience, auction expertise and familiarity with hard money loans. With that being said, you've likewise been brushing up your rehab and renovation knowledge, have got a licensed contractor lined up and are positive that you will be able to do a stellar job for this house.
But capital is usually a different question altogether. When you meet with a regular lending institution, such as a bank for a mortgage loan, it very likely will take, as a minimum, 4-8 weeks for the approval to come through and the money to be accessible. Considering that the home owners are seeking a fast closing, that doesn't seem like a wise idea to you in the slightest.
With banks adding harder loan standards in recent years, it is now tougher for a self-employed individual to obtain a home loan, particularly if his credit circumstances are not flawless. So does that leave you with no option, but to give up your aspiration to venture into home flipping? Certainly not, on the grounds that you can always use the Alabaster hard money loan approach to pay for your rehab project.
A hard money home loan in Alabaster promises what's probably most essential to real estate investors — a very fast closing time of as few as 2 weeks. Besides that, hard money lenders can approve lending up to 70% LTV of the property's valuation, as calculated by a credentialed third-party evaluation. At first, hard money real estate loans, with starting interest rates of 10%, appear to be more pricey than bank lending options. But the time frames of these loans tend to be comparatively short, which makes the interest rate less significant. The cost of such short-term loans should be looked at on par with any other financial outlay that you might encounter in the course of the project. Once you have resold the house and have made a successful financial gain, you'll be able to recoup this expense from the property or home — just like recouping the cost of brand-new home appliances that you installed.
Furthermore, even individuals with low credit can easily qualify for a hard money mortgage. Instead of focusing solely on the person's credit score or source of income, Alabaster hard money lenders, who may be a private company or an individual, say yes to a loan as a result of evaluating the property value, its marketability, where it is located, and the odds of getting back their capital in case of foreclosure. The amount that a borrower can put upfront for the home, his past real estate experience, and selling price of comparative properties in the area are other details that go into analyzing an applicant's suitability for a hard money real estate loan.
Searching for a hard money lender in Alabaster to fund your real estate project is not difficult, provided that the opportunity that lies ahead of you is promising and offers a strong potential for returns. Complete the contact form or give us a call and let's discuss your property.
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