Hard Money Loans in Amarillo
An incredible deal on a fix and flip property in an excellent area of the city suddenly turns up — sounds too good to be true. Everybody knows that skilled professional flippers, like Tarek and Christina El Moussa who do HGTV's reality flipping program, Fix or Flop, are able to make a typical profit of $40,000 to $50,000 on their home projects. And without a doubt, they are aided in a major way by their professional know-how, auction abilities and familiarity with hard money loans. Having said that, you have likewise been cultivating your rehab and renovation knowledge, have a very good building contractor lined up and are confident that you will be able to do a bang up job on this property.
But where can you find the needed capital for home flipping? When you approach a customary lending institution, such as a bank for a loan, it likely will take, at the very least, 4-8 weeks for the approval to be completed and the funds to be given out. Given that home owners wish to have a fast closing, it may be best to start seeking out other financing options.
Moreover, should you have a less-than-perfect credit score or don't receive a consistent income, it is usually harder for you to qualify for bank financing, considering the tougher loan criteria banks have put in place as of late. So does that leave you with no option, but to give up your dream to venture into home renovating? By no means, on the grounds that you can always use the Amarillo hard money loan approach to fund your flipping project.
A hard money home loan in Amarillo provides what's possibly most important to real estate investors — a quick closing time period of as few as 14 days. Besides that, hard money lenders can do funding up to 70% LTV of the home's valuation, as estimated by a licensed third-party appraiser. At first, hard money real estate loans, with starting interest rates of 10%, seem to be higher priced than bank financing. But in reality, the lending rate isn't as useful a measure for these loans, given that they aren't long-term loans. As it pertains to short-term loans of 1 or 2 years or less, you should consider them similar to any kind of other expense for the project. Right after you fix up and sell off the property, recouping this expense is no different than recouping the expense for home appliances you put in the place.
Additionally, it's simple to qualify for a hard money mortgage, regardless if your credit situation is not that great. Instead of focusing solely on the person's credit score or wages, Amarillo hard money lenders, who could be a privately owned company or an individual person, approve a loan after analyzing the home value, ease of marketability, where it is located, and the odds of recuperating their capital in case of foreclosure. Additional factors that influence a borrower's approval for a hard money real estate loan include how much money he is in a position to put towards a down payment, his former experience being a real estate investor, and price of comparative, recently sold homes in the area.
So any time you run into a good and worthwhile flipping opportunity, be assured you'll have a hard money lender in Amarillo, willing to lend you the funds you will need. Fill out the contact form or call us and let's talk about the property you have in mind.
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