Hard Money Loans in Alvin
Suppose that you've run across this excellent deal for a fix and flip property located in a terrific location, and you're either a seasoned real estate investor or a newbie who wants to try his hand at flipping. Most folks know that skilled professional flippers, such as Tarek and Christina El Moussa from HGTV's reality home flipping show, Fix or Flop, are able to earn a typical profit of forty to fifty thousand dollars in their rehab business. And indeed, they are aided in a big way due to their professional knowledge, auction skills and understanding of hard money loans. Nevertheless, you are convinced that your first class rehab and remodeling talents will help you do a great job on this property — in addition, you've already arranged to have one of the best general contractors in town to work on this project.
But how can you find the necessary funding for flipping? If you approach a regular lender, much like a bank for a mortgage loan, it's likely going to take a minimum of 30-60 days for the approval to come through and your money to be dispersed. With all the sellers looking for a fast closing, that does not appear to be a wise idea to you whatsoever.
Furthermore, for those who have a less-than-perfect credit score or don't have a consistent income, it is usually more difficult to obtain bank financing, considering the tighter loan criteria banks have issued lately. So will a lack of funds prevent you from sticking to your aspirations? Absolutely not, seeing as you always have the Alvin hard money loan alternative.
A hard money home loan in Alvin provides what is deemed vital to most real estate sales — a quick closing of only a few weeks and at times less. Also, hard money lenders will often consent to lending up to 70% LTV of the property or home value, as estimated by a licensed third-party evaluator. At first, hard money real estate loans, with starting lending rates of 10%, seem to be more expensive than bank financing. But once you consider these are not long-term mortgage loans, the rate of interest may be misleading. Short-term loans of a couple months to a handful of years are best thought of in terms of cost of capital, much like any other expenditure associated with a project. After you fix up and sell the property, recovering this expense is no different than recouping the money you spent for home appliances you placed into the property.
Also, it's simple to qualify for a hard money mortgage, regardless of whether your credit rating is not that superb. As an alternative for focusing only on the person's credit score or wages, Alvin hard money lenders, who can be a private company or an individual person, authorize a loan as a result of examining the property value, ease of marketability, where it is located, and the likelihood of getting back their money in case of foreclosure. How much a borrower can put down in advance for the property, his past real estate experience, and selling price of comparative properties in the area are additional factors that go into establishing an applicant's suitability for a hard money real estate loan.
If you happen to have stumbled on an excellent real estate opportunity with a significant potential for returns, you have also found yourself a hard money lender in Alvin that's ready to finance your rehab venture. Submit the form on this page or call us to talk about the property you have in mind.
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