Hard Money Loans in Alexandria
Suppose you've run into this excellent bargain on a fix and flip property located in an ideal neighborhood, and you happen to be either a skilled real estate investor or a newbie who wants to try his hand at flipping. You've heard that competent property flippers, such as the married couple on HGTV's Flip or Flop, turn a remarkable average return of around 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 been major factors to their success. However, you're certain that your first class rehab and renovation abilities will help you do a quality job for this property — what's more, you already have arranged to have one of the most sought after building contractors in town to take on the project.
But financing is a separate question altogether. For those who opt for a traditional loan from the bank, you will have to wait approximately 1 to 2 months up until the time the loan is approved and your funds are readily available. With all the home owners wanting a fast closing, that doesn't seem like a great idea to you at all.
On top of this, banks have already been tightening up their lending requirements in recent times, making it challenging for someone to receive a traditional loan if their credit circumstances are not perfect or he does not possess a consistent salaried job. So do you have to stop trying and abandon your ambition to venture off into fix and flips? Never, on the grounds that you can always go the Alexandria hard money loan route to pay for your rehab project.
Should you obtain a hard money home loan in Alexandria, you're going to get what is probably most essential to real estate transactions across the country — a fast closing of about 2 weeks. What's more, the LTV value can range up to 70% of the property value, as determined by a credentialed appraiser. Some people believe hard money real estate loans to be costlier than regular loans, considering interest rates for these loans commonly start at 10%. But usually, the lending rate isn't as useful a measure for these loans, simply because they are not long-term loans. When it comes to short-term loans of several years or less, you should consider them similar to any kind of other expenditure for the project. Right after you rehab and sell off the house, recovering this expense is no different than recouping the one for home appliances you placed into the place.
Also, it is easy to obtain a hard money mortgage, even if your credit rating is not that superb. The person's credit score is not the single deciding factor for Alexandria hard money lenders — they also look at the piece of real estate, its market valuation, where it is located, and its potential to return their investment if things do not work out as planned. The amount that an applicant can put down in advance towards the house, how much experience he has in real estate investments, and price range of comparable homes in the vicinity are various other factors that go into analyzing an applicant's suitability for a hard money real estate loan.
So in the event you run into a good and worthwhile flipping opportunity, feel comfortable knowing you'll have a hard money lender in Alexandria, ready to loan you the cash you'll need. Enter your info into the contact form or call us to talk about the property or properties you have in mind.
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