Hard Money Loans in Albuquerque
A fabulous deal on a fix and flip opportunity located in an excellent area of the city all of a sudden shows up — sounds too good to be true. Most folks know that skilled professional flippers, like Tarek and Christina El Moussa who star in HGTV's reality home flipping show, Fix or Flop, can readily generate an average profit of forty to fifty thousand dollars in their rehab business. No need to explain that their rehabbing experience, understanding of hard money loans, expertise in their housing market, and auction skills have played an important role in their success. That said, you have recently been developing your rehab and renovation knowledge, have got a building contractor ready for the project and are positive that you're capable of doing a bang up job for this house.
But how do you get the needed financing for home flipping? For those who apply for a conventional bank loan, you will have to wait around approximately 30-60 days up until the loan is approved and the funding is available. Given that sellers give preference to a fast closing, you may have to begin searching for additional financing options.
With banks adding more challenging loan guidelines in the last few years, it is much harder for a self-employed person to obtain a mortgage loan, particularly if his credit situation is not perfect. So do you have to stop trying and abandon your desire to venture into the real estate market? Certainly not, seeing as you also have the Albuquerque hard money loan option.
A hard money home loan in Albuquerque provides what's perhaps most sought after by real estate investors — a fast closing time of as little as two weeks. Besides that, hard money lenders can do funding up to 70% LTV of the property's valuation, as established by a certified third-party evaluator. Some people consider hard money real estate loans to be costlier than standard financing, because the lending rates for these loans normally start out at 10%. But if you consider these loans are not long-term mortgage loans, the rate tends to be misleading. When it comes to short-term loans of 1 or 2 years or less, you should think of them the same as you would for every other expense for your project. After you rehab and sell off the property, recovering this expense is the same as recouping the expense for home appliances you put in the house.
What's more, it is simple to qualify for a hard money mortgage, regardless if your credit rating is not that impressive. Albuquerque hard money lenders do not approve a loan solely judging by the customer's credit score — instead they also look at the property or home, its location and value, and the property's capability to pay back the loan without the help of the person. On top of that, if the person have proven experience in comparable real estate projects, can put down money towards a down payment, and the cost of comparable homes in the area works in his favor, he will have a really good chance of being eligible to get a hard money real estate loan.
So should you run into a very good and worthwhile flipping opportunity, relax knowing you will have a hard money lender in Albuquerque, willing to lend you the cash you need. Fill out the form or call us to discuss the project you have in mind.
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