Hard Money Loans in Aransas Pass
An incredible buy on a fix and flip property located in a good neighborhood suddenly shows up — seems too good to be true. A majority of people know that skilled professional flippers, such as Tarek and Christina El Moussa who star in HGTV's reality home flipping program, Fix or Flop, can earn an average profit margin of $40,000 to $50,000 in their rehab business. Without question, their rehabbing experience, understanding of hard money loans, expertise in their housing market, and auction talents have played a significant role in their successes. Nonetheless, your rehab and renovation skills aren't bad either — aside from that, you've already identified an ideal building contractor to handle the job.
But money is often a separate problem entirely. A standard lender, say for example a bank, takes a minimum of one to two months to approve the financing and provide the capital. Because most home owners favor a fast closing, you might want to begin seeking out other financing alternatives.
As well as this, in case you have a less-than-perfect credit situation or don't receive a consistent source of income, it is usually harder to obtain a bank loan, with the tighter loan guidelines banks have put in place lately. So do you have to admit defeat and forego your dream to get into real estate? By no means, on the grounds that you can always use the Aransas Pass hard money loan approach to finance your rehab project.
A hard money home loan in Aransas Pass promises what's probably most important to real estate investors — a fast closing time period of as little as fourteen days. Further, financing can be done for up to 70% loan-to-value of the as-is value, as deemed by a licensed appraiser. At first glance, hard money real estate loans, with starting interest rates of 10%, appear to be more costly than bank financing. But when you consider these are not long-term loans, the rate of interest may be misleading. Short-term loans of a couple of months to a few years are best understood in terms of cost of capital, the same as every other expenditure in connection with a project. After you renovate and unload the house, recuperating this expense is the same as recuperating the expense for stainless steel appliances you installed in the property.
Also, it isn't difficult to qualify for a hard money mortgage, regardless if your credit rating is not that superb. Instead of focusing primarily on the borrower's credit score or wages, Aransas Pass hard money lenders, who may be a private company or an individual person, say yes to a loan after assessing the property value, how easy it will be to market, its location, and the odds of recuperating their money in case they have to foreclose the loan. Several other factors that influence a person's eligibility for a hard money real estate loan include how much he can put into a down payment, his previous experience being a real estate investor, and selling price of comparative, recently sold properties in the vicinity.
So any time you come across a very good and lucrative investment opportunity, rest assured you will have a hard money lender in Aransas Pass, willing to loan you the money you'll need. Complete the form or get in touch with us via phone to discuss your property or properties.
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