Hard Money Loans in Albertville
Imagine you've come across this truly good deal on a fix and flip property in an ideal location, and you're either an experienced real estate investor or a newbie who wants to try his hand at flipping. Everybody knows that skilled professional flippers, like Tarek and Christina El Moussa who do HGTV's reality flipping program, Fix or Flop, can earn a typical profit of $40,000 to $50,000 when they flip properties. No need to explain that their rehabbing experience, knowledge of hard money loans, expertise in their market, and auction talents have been major factors to their successes. However, you're convinced that your first class rehab and renovation talents will assist you to do a great job on the project — furthermore, you have already lined up one of the best general contractors in the business to take on the job.
But where precisely do real estate investors get funding? Should you apply for a normal bank loan, you will have to wait roughly 1-2 months before the loan is approved and your funds are ready to go. Due to the fact all the home owners are wanting to find a fast closing, that doesn't appear to be a good option to you whatsoever.
With banks adding harder loan standards in the past several years, it's become harder for a self-employed person to get a mortgage loan, especially if his credit situation is not optimal. So will a shortage of funds keep you from pursuing your dream? Certainly not, considering that you could always use the Albertville hard money loan approach to finance your rehab project.
A hard money home loan in Albertville promises what's possibly most crucial to real estate investors — a very fast closing in as little as a few weeks. Further, loan amounts can be made up to 70% loan-to-value of the "as is" value, as established by a licensed appraiser. Some individuals regard hard money real estate loans to be costlier than ordinary financing, considering lending rates for such loans generally start off at 10%. But the time frames of these loans tend to be rather short, making the rate far less significant. Short-term loans of a couple of months to a few years are best thought of as cost of capital, very much like any other expense related to a project. Once you've sold the house and have made a successful financial gain, you'll be able to recoup this expense from the house — just like recovering the money spent on the brand-new appliances for the kitchen that you've put in.
Apart from this, hard money mortgages are not difficult to qualify for, even if you have got less-than-perfect credit. Rather than focusing entirely on the person's credit score or source of income, Albertville hard money lenders, who may be a private company or an individual, approve a loan as a result of assessing the home value, how easy it will be to market, where it is located, and the possibility of getting back their capital in case they have to foreclose the loan. On top of that, if the person can demonstrate prior experience in comparable real estate endeavors, can place down cash for a down payment, and the value of similar properties in the area works to his benefit, he has a good chance of being approved to get a hard money real estate loan.
So in the event you come across a very good and lucrative flipping opportunity, rest assured you will have a hard money lender in Albertville, willing to lend you the money you need. Submit the contact form on this page or give us a call to discuss the property or properties you have in mind.
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