Hard Money Loans in Americus
You discovered this amazing possibility for rehabbing and flipping this wonderful outdated property in a good area and it seems a lot like the deal you've been looking forward to for quite some time. A majority of people know that knowledgeable professional flippers, such as Tarek and Christina El Moussa from HGTV's reality home flipping show, Fix or Flop, can make an average profit of $40,000 to $50,000 on their flips. It's fair to say their past experiences rehabbing, understanding of hard money loans, familiarity with the market, and auction skills have been large factors to their results. With that being said, you have also been developing your rehab and remodeling skills, have a very good building contractor lined up and are certain that you will be able to do a bang up job on this home.
But where can real estate investors obtain funds? A traditional lender, for instance a bank, takes at the very least 1 to 2 months to consent to the financing and release the monies. So if you're expecting a fast closing, you must recognize that this could cost you weeks, making you miss out on the opportunity.
With banks establishing tougher loan standards in the last few years, it is now harder for a self-employed person to get a mortgage loan, particularly if his credit score is not perfect. So will inadequate funding keep you from sticking to your aspirations? By no means, due to the fact you could always go the Americus hard money loan route to finance your flipping project.
A hard money home loan in Americus offers what's regarded as vital to many real estate transactions — a very fast closing of only a few weeks and at times even less. Aside from that, financing can be made up to 70% loan-to-value of the as-is value, as calculated by a professional appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, seem to be more pricey than bank lending products. But usually, the rate of interest isn't as pertinent for these loans, since they will never be long-term loans. Short-term loans of a couple months to a few years are best looked at in terms of cost of capital, very much like all other expenses related to a project. When you have sold the property or home and have made a positive return, you'll be able to reclaim this expense from the property — very much like recuperating the money spent on the brand-new appliances for the kitchen that you've installed.
Apart from this, hard money mortgages are not difficult to qualify for, even in the event you have got less-than-perfect credit. The applicant's credit score will not be the primary deciding factor for Americus hard money lenders — additionally, they consider the property, its market value, its location, and its ability to return their financial commitment if things should not go as planned. Other variables that have an impact on an applicant's acceptance for a hard money real estate loan can include what amount of money he is able to put towards a down payment, his previous experience as a real estate investor, and selling price of comparable, recently sold residences in the vicinity.
So should you come across an outstanding and worthwhile investment opportunity, feel comfortable knowing you'll have a hard money lender in Americus, able to lend you the capital you'll need. Submit the contact form or get in touch with us via phone and let's talk about your property.
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