Hard Money Loans in Ardmore
Suppose you've run into this truly good bargain for a fix and flip property in a great location, and you're either an experienced real estate investor or a first-timer who wants to try his hand at flipping. Everyone knows that skilled professional flippers, along the lines of Tarek and Christina El Moussa who star in HGTV's reality flipping program, Fix or Flop, can readily turn a typical profit of $40,000 to $50,000 in their rehab business. Undoubtedly, you also realize that their great results can be credited to the simple fact that they are professionals, are knowledgeable in hard money loans, they know market trends really well and in addition, they know how to work a public auction for getting a good price. Still, your rehab and remodeling skills aren't bad either — aside from that, you've already found a good general contractor to tackle the home.
But where precisely can real estate investors find money? In the event you apply for a normal bank loan, you will need to wait approximately 4-8 weeks until eventually the mortgage is approved and your funding is ready to go. Given that sellers wish to have a fast closing, it may be advisable to start searching for other funding options.
With banks establishing tougher loan guidelines in the past few years, it has become more difficult for a self-employed individual to get a home loan, particularly if his credit score is not perfect. So will inadequate funds prevent you from pursuing your aspirations? By no means, because you can always use the Ardmore hard money loan approach to finance your flipping project.
When you apply for a hard money home loan in Ardmore, you will get what is probably most vital to real estate negotiations across the country — a fast closing of approximately 14 days. Furthermore, hard money lenders can approve lending up to 70% LTV of the property or home's valuation, as established by a certified third-party evaluation. At first, hard money real estate loans, with starting lending rates of 10%, appear to be higher priced than bank loans. But the time frames of these loans tend to be much shorter, which means the interest rate is far less important. Short-term loans of a couple of months to a few years are best approached as cost of capital, the same as any other expenditure associated with a project. And as soon as you have sold the house, recouping this expense is comparable to recouping the expense for all the bathroom improvements you performed.
Also, it isn't difficult to qualify for a hard money mortgage, even if your credit rating is not that extraordinary. Ardmore hard money lenders do not take on a loan solely based on the applicant's credit score — rather they additionally analyze the home, its location and value, and the property's ability to pay back the financing by itself. On top of this, if the borrower have proven experience in comparable real estate endeavors, can place down cash for a down payment, and the value of equivalent houses in the area works to his benefit, he will have a good likelihood of being approved to get a hard money real estate loan.
If you happen to have stumbled upon a really great home to flip with a significant probability of returns, you've also discovered a hard money lender in Ardmore who's ready to fund your rehab ventures. Enter your info into the form or get in touch with us via phone to talk about the property you have in mind.
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