Hard Money Loans in Altus
There's this outstanding opportunity to rehab and flip this nice old property in a very good area and it seems like the one you've been eagerly waiting on for quite some time. You may have heard that veteran house flippers, such as the couple on HGTV's Flip or Flop, have an impressive average profit of around forty to fifty thousand dollars. And indeed, they are helped in a big way by their professional know-how, auction skills and understanding of hard money loans. That said, you have recently been developing your rehab and remodeling knowledge, have a licensed contractor lined up and are certain that you will be able to do a bang up job for this property.
But where do you get the needed financing for flipping? If you get in touch with a regular lending institution, such as a bank for a mortgage loan, it's likely going to take, as a minimum, four to eight weeks for your approval to come through and the money to be dispersed. With the home owners looking for a fast closing, that does not appear to be a good idea to you at all.
On top of this, banks have been tightening up their lending criteria in recent times, which makes it challenging for people to receive a regular loan if their credit circumstances are not perfect or he doesn't have a regular salaried job. So should you stop trying and forego your dream to get into the real estate market? Under no circumstances, especially when Altus hard money loans enable you to achieve great things in real estate.
A hard money home loan in Altus provides what is considered imperative to many real estate deals — a very fast closing of just a 2-3 weeks and at times even less. Further, financing can be made up to 70% loan-to-value of the as-is home value, as deemed by a qualified appraiser. With the interest rates starting near 10%, hard money real estate loans may seem, at first, to be higher priced when compared with conventional bank loans. But when you appreciate that these loans are not long-term home loans, the rate may be misleading. The cost of such short-term loans ought to be evaluated on par with every other financial outlay that you will encounter during the project. And once you've finally sold the property or home, recouping this expense is the exact same as recuperating the expense for all the kitchen and bath upgrades you did.
Furthermore, even an individual with bad credit will be able to be eligible for a hard money mortgage. Altus hard money lenders do not take on a loan strictly judging by the borrower's credit score — rather they additionally examine the home, its value and location, and the home's ability to pay back the financing independent of the applicant. Several other criteria that affect a borrower's acceptance for a hard money real estate loan can include how much money he can put towards a down payment, his previous experience being a real estate investor, and selling price of comparable, just recently sold properties in the area.
So in the event you run into an outstanding and profitable flipping opportunity, feel comfortable knowing you'll have a hard money lender in Altus, ready to lend you the cash you may need. Complete the contact form on this page or call us to talk about your project.
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