Hard Money Loans in Alexandria
A fabulous bargain on a fix and flip property in a good subdivision all of a sudden shows up — sounds so good that it is hard to believe. You've heard that professional house flippers, similar to the married couple on HGTV's Flip or Flop, turn an impressive average profit near forty to fifty thousand dollars. And yes, they are aided in a major way due to their professional experience, auction skills and familiarity with hard money loans. With that being said, you have also been developing your rehab and remodeling knowledge, have a very good licensed contractor ready to go and are certain that you're capable of doing a great job on this home.
But money is often a different question altogether. If you approach a standard lending institution, like a bank for financing, it's very likely going to take no less than 4-8 weeks for your approval to be completed and your funds to be accessible. Given that home owners prefer a fast closing, you might have to start seeking out some other funding options.
Furthermore, in case you have a less-than-perfect credit rating or do not receive a conventional income source, it is usually tougher to obtain bank financing, considering the stricter loan guidelines banks have issued as of late. So should you give up and abandon your aspiration to embark into real estate? Absolutely not, given that you always have the Alexandria hard money loan option.
A hard money home loan in Alexandria provides you with what's probably most sought after by real estate investors — a fast closing in as few as 2 weeks. Plus, the LTV value can reach up to 70% of the property value, as estimated by a certified appraiser. With the lending rates starting around 10%, hard money real estate loans might appear, at first glance, to be more expensive compared to conventional bank loans. But if you understand these loans are not long-term loans, the rate of interest may be misleading. The cost of such short-term loans ought to be viewed on par with any other cost that you might encounter during the project. And as soon as you've flipped the house, recovering this expense is identical to recuperating the expense for the bathroom updates you did.
In addition, even an individual with poor credit can still be eligible for a hard money mortgage. The customer's credit score is not the exclusive determining factor for Alexandria hard money lenders — additionally, they analyze the home, how much it is worth, its location, and its capability to return their investment if things should not work out as intended. On top of that, if the borrower have proven experience in comparable real estate projects, can place down money towards a down payment, and the cost of comparative homes in the vicinity works in his favor, he has an excellent likelihood of being approved to obtain a hard money real estate loan.
So in the event you run into an outstanding and worthwhile flipping opportunity, be assured you will have a hard money lender in Alexandria, equipped to loan you the money you need. Submit the contact form or call us and let's discuss your project.
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