Hard Money Loans in Angleton
A fantastic buy on a fix and flip opportunity located in a nice area of the city all of a sudden shows up — sounds too good to be true. Everybody knows that skilled professional flippers, along the lines of Tarek and Christina El Moussa from HGTV's reality 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 major way as a result of their professional knowledge, auction abilities and familiarity with hard money loans. Still, your rehab and remodeling skills aren't bad either — in any case, you've already identified the right licensed contractor to take on the job.
But where do real estate investors get funds? Should you get in touch with a regular lending institution, like a bank for a loan, it more than likely will take, at a minimum, 30-60 days for your acceptance to come through and your funds to be sent out. So if you're wishing for a fast closing, it's important for you to recognize that this will cost you a couple of weeks, making you lose out on the sale.
With banks bringing in tougher loan criteria in the past several years, it's become tougher for a self-employed individual to get a mortgage loan, particularly if his credit circumstances are not optimal. So does that mean you have no option, but to drop your ambition of venturing into home flipping? Absolutely not, given that you also have the Angleton hard money loan option.
If you decide to get a hard money home loan in Angleton, you have access to what is probably most vital to real estate purchases throughout the country — a fast closing of roughly 2 weeks. Besides that, hard money lenders frequently agree to lending up to 70% LTV of the property or home value, as assessed by a licensed third-party evaluator. With interest rates starting around 10%, hard money real estate loans might appear, initially, to be higher in price as compared with conventional bank financing. But if you appreciate that these loans are not long-term loans, the rate can be misleading. As it pertains to short-term loans of 1 or 2 years or even less, you should think about them the same as you would for any other expense for your project. And as soon as you've sold the property or home, recovering this expense is comparable to recouping the expense for all the bathroom or other improvements you performed.
Additionally, it isn't difficult to qualify for a hard money mortgage, even when your credit situation is not that superb. Instead of focusing solely on the borrower's credit score or source of income, Angleton hard money lenders, who may be a privately owned company or an individual person, authorize a loan as a result of analyzing the property value, ease of marketability, its location, and the possibility of recuperating their money in case they have to foreclose the loan. Several other factors that affect an individual's approval for a hard money real estate loan include how much money he is in a position to put into a down payment, his former experience as a real estate investor, and price of similar, fairly recently sold homes nearby.
So in the event you come across an outstanding and worthwhile flipping opportunity, feel comfortable knowing you will have a hard money lender in Angleton, able to loan you the funds that you need. Enter your info into the contact form on this page or give us a call to talk about your project.
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