Hard Money Loans in Alamo
You discovered this amazing opportunity to fix and flip this wonderful old house in a good part of town and it seems a lot like the deal you have been looking forward to for quite some time. Expert residential home flippers, similar to the young married couple on Flip or Flop, HGTV's reality flipping program, are able to earn a profit of $40-$50k on the majority of projects. Without question, their past experiences rehabbing, understanding of hard money loans, expertise in their housing market, and auction skills have been large factors to their successes. Nonetheless, your rehab and remodeling knowledge isn't that bad either — besides, you've already identified the right building contractor to tackle the job.
But how do real estate investors get funding? A conventional lender, say for example a bank, takes at the very least 1 to 2 months to authorize the mortgage and provide the money. Considering that all the home owners want a fast closing, that doesn't appear like a wise idea to you in the slightest.
On top of this, banks have already been tightening up their lending requirements in recent times, which makes it difficult for a person to receive a typical home loan if their credit situation is not perfect or he does not possess a regular salaried occupation. So do you have to give up and abandon your dream to venture off into fix and flips? By no means, particularly while Alamo hard money loans enable you to accomplish great things in real estate.
If you obtain a hard money home loan in Alamo, you're going to get what's perhaps most essential to real estate purchases throughout the country — a very fast closing of around two weeks. Aside from that, financing can be made up to 70% loan-to-value of the "as is" property value, as determined by a qualified appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, could be seen as more costly than bank loans. But once you consider these loans are not long-term mortgage loans, the interest rate tends to be misleading. Short-term loans of several months to a handful of years are best understood as cost of capital, very much like any other expenditure related to a project. When you have turned the house and have made a successful return, you can recoup this expense from the house — just like recovering the money spent on the brand-new home appliances that you have put in.
Besides, hard money mortgages are easy qualifying, regardless if you posses less-than-perfect credit. Alamo hard money lenders do not take on a loan solely on the basis of the applicant's credit score — rather they additionally assess the property or home, where it is located and what it is worth, and the home's capacity to pay back the loan independent of the person. The total amount that a borrower can put upfront for the home, his past real estate experience, and selling price of comparable properties in the neighborhood are other details that go into determining an individual's eligibility for a hard money real estate loan.
So should you come across a really good and profitable flipping opportunity, be assured you will have a hard money lender in Alamo, willing to lend you the cash you'll need. Enter your info into the contact form on this page or give us a call and let's discuss the property or properties you have in mind.
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