Hard Money Loans in Argyle
There is this outstanding opportunity to rehab and flip this wonderful out of date condo in a good area and it looks a lot like the one you have been eagerly waiting on for quite some time. You may have heard that veteran house flippers, similar to the married couple on HGTV's Flip or Flop, enjoy a remarkable average profit margin of around $40,000 – $50,000. Undoubtedly, you also understand that their great results can be credited to the simple fact that they are professionals, are knowledgeable in hard money loans, they know the market really well and additionally, they know how to work a public auction for getting a good deal. That said, you've also been brushing up your rehab and remodeling knowledge, have got a contractor ready to go and are positive that you will be able to do a great job on this home.
But where do real estate investors get financing? A standard lender, like for example a bank, takes a minimum of 1-2 months to consent to the financing and hand over the funds. With all the home owners wanting a fast closing, that does not appear to be a good option to you whatsoever.
To add to it, banks have been tightening up their lending criteria in recent years, which makes it challenging for people to receive a regular home loan if their credit situation is not perfect or he is lacking a consistent salaried job. So does this leave you with no option, but to abandon your dream of venturing into home flipping? Absolutely not, given that you always have the Argyle hard money loan option.
A hard money home loan in Argyle offers what's viewed as crucial to many real estate transactions — a quick closing of just a few weeks and at many times even less. Additionally, loans are made up to 70% loan-to-value of the "as is" house value, as determined by a licensed appraiser. Some people consider hard money real estate loans to be more costly than ordinary loans, because the interest rates for these loans normally start off at 10%. But when you understand these loans are not long-term home loans, the rate of interest tends to be misleading. Short-term loans of a couple months to a few years are best approached as cost of capital, the same as any other financial outlay related to a project. After you remodel and sell the house, recovering this expense is no different than recovering the one for new kitchen appliances you installed in the home.
Besides, hard money mortgages are not difficult to qualify for, regardless if you have very bad credit. Argyle hard money lenders don't approve a loan strictly according to the applicant's credit score — instead they will look at the property, where it is located and what it is worth, and the home's ability to pay back the loan on its own. The total amount that a borrower can put upfront for the property, his real estate experience, and selling price of comparable homes in the same vicinity are additional details that go into establishing an applicant's eligibility for a hard money real estate loan.
Finding a hard money lender in Argyle to finance your renovation project is not hard, as long as the opportunity that lies before you is promising and has a good potential for returns. Enter your info into the contact form on this page or get in touch with us via phone to talk about your property or properties.
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