Hard Money Loans in Alpharetta
A remarkable deal on a fix and flip property located in a nice neighborhood shows up out of the blue — seems so good that it's difficult to believe. Most folks know that expert professional flippers, such as Tarek and Christina El Moussa who do HGTV's reality home flipping program, Fix or Flop, can readily generate an average profit of $40,000 to $50,000 on their flips. It goes without saying their past experiences rehabbing, understanding of hard money loans, familiarity with the housing market, and auction talents have been large factors to their results. However, you are certain that your first class rehab and remodeling abilities can help you do an outstanding job on this house — in addition, you have already lined up one of the premier general contractors in the area to take care of the job.
But where do real estate investors find capital? If you apply for a conventional loan via a bank, you will end up waiting roughly 1-2 months up until the financing is approved and your money is ready. So if you will be hoping for a fast closing, you need to be aware that this may cost you weeks, making you miss out on the house.
As well as this, for those who have an unfavorable credit score or don't have a conventional source of income, it may be harder to be eligible for a bank loan, considering the tighter loan guidelines banks have put in place in recent times. So does that mean you have no option, but to give up your ambition to venture into home flipping? Certainly not, on the grounds that you can always go the Alpharetta hard money loan route to finance your rehab project.
A hard money home loan in Alpharetta offers what is considered essential to most real estate transactions — a fast closing of only a 2-3 weeks and sometimes less. Besides that, hard money lenders can do funding up to 70% LTV of the home's valuation, as determined by a certified third-party evaluation. A number of people consider hard money real estate loans to be more pricey than standard loans, because the lending rates of such loans ordinarily start out at 10%. But in reality, the rate of interest is not as pertinent for these loans, simply because they will never be long-term financing. The cost of such short-term loans should be evaluated on par with every other expenditure that you would encounter during the project. And once you have flipped the property, recuperating this expense is comparable to recovering the expense for all the bathroom updates you performed.
What's more, it is easy to obtain a hard money mortgage, even if your credit rating is not that superb. Alpharetta hard money lenders do not approve a loan strictly judging by the applicant's credit score — rather they also analyze the property, its location and value, and the home's ability to pay back the loan on its own. On top of that, if the applicant can demonstrate past experience in similar real estate ventures, can put down money towards a down payment, and the value of similar properties in the area works to his benefit, he has a very good chance of being eligible to obtain a hard money real estate loan.
Locating a hard money lender in Alpharetta to finance your flipping business is not difficult, so long as the opportunity that lies ahead of you is promising and possesses the right prospect for returns. Complete the contact form on this page or give us a call to discuss your property or properties.
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