Hard Money Loans in Aledo
A fantastic bargain on a fix and flip property located in a nice neighborhood all of a sudden shows up — seems so good that it is hard to believe. You've heard that veteran home flippers, such as the married couple on HGTV's Flip or Flop, have an impressive average return close to forty to fifty thousand dollars. It goes without saying their past experiences rehabbing, knowledge of hard money loans, expertise in their housing market, and auction skills have played an important role in their successes. Nonetheless, your rehab and remodeling knowledge isn't bad either — in any case, you have already found a suitable licensed contractor to start this job.
But financing is usually a separate problem altogether. A standard lending institution, say for example a bank, takes at a minimum one to two months to authorize the loan and provide the money. With the home owners wanting a fast closing, that does not appear to be a good option to you at all.
To add to it, banks have been tightening up their lending requirements in recent times, making it hard for a person to get a conventional home loan if their credit circumstances are not flawless or he doesn't have a regular salaried profession. So does that leave you with no option, but to drop your dream of venturing into home flipping? By no means, due to the fact you can always use the Aledo hard money loan approach to pay for your home renovating project.
A hard money home loan in Aledo promises what is possibly most essential to real estate investors — a quick closing time of as little as 14 days. Besides that, hard money lenders can approve funding up to 70% LTV of the home's valuation, as established by a qualified third-party appraiser. A number of people believe hard money real estate loans to be costlier than regular loans, considering lending rates for these loans often start out at 10%. But in reality, the rate of interest isn't as relevant for these loans, because they will never be long-term loans. The price of such short-term loans ought to be looked at much like any other expense that you would have to meet for the project. Once you have sold the house and have made a good profit, you can get back this expense from the home — very much like recuperating the cost of brand-new kitchen appliances that you've installed.
Furthermore, even someone with weak credit can easily qualify for a hard money mortgage. Instead of focusing only on the person's credit score or wages, Aledo hard money lenders, who can be a private company or an individual person, say yes to a loan as a result of analyzing the home value, its salability, where it is located, and the odds of recovering their money in case of foreclosure. On top of this, if the person have proven experience in comparable real estate endeavors, can place down money for the down payment, and the cost of comparative properties in the neighborhood works to his benefit, he stands a really good chance of being approved to obtain a hard money real estate loan.
So if you have stumbled upon a really good home to flip with a huge prospect of returns, you have also stumbled upon a hard money lender in Aledo that is happy to finance your flipping ventures. Enter your info into the form or call us to talk about the property you have in mind.
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