Hard Money Loans in Arkansas City

Imagine you've run across this excellent deal on a fix and flip property located in an ideal location, and you happen to be either a skilled real estate investor or a newbie who hopes to try his hand at flipping. Professional home flippers, such as the young couple on Flip or Flop, HGTV's reality flipping program, are capable of generating a gain of $40-$50k as an average on more than one occassion. Of course, you also understand that their great results are attributed to the simple fact that they are professionals, are well versed in hard money loans, they know the marketplace quite well and in addition, they are good at working an auction to purchase their properties at an appropriate price. However, you're assured that your first class rehab and renovation abilities will help you do a quality job for this project — what's more, you already have arranged to have one of the best contractors in town to take on the project.

But money is often a separate problem altogether. Should you approach a customary lending institution, much like a bank for funding, it's in all likelihood going to take no less than 4-8 weeks for your approval to be completed and your funds to be given out. With the sellers wanting a fast closing, that doesn't seem like a good idea to you in the slightest.

With banks establishing more challenging loan criteria in the last few years, it has become more difficult for a self-employed person to get a mortgage loan, especially when his credit situation is not perfect. So do you have to admit defeat and forego your desire to venture into fix and flips? Certainly not, because you can always use the Arkansas City hard money loan approach to finance your flipping project.

A hard money home loan in Arkansas City offers what is regarded as crucial to most real estate sales — a very fast closing of only a few weeks and more often than not less. Also, hard money lenders are able to do funding up to 70% LTV of the home's valuation, as estimated by a credentialed third-party appraiser. At first, hard money real estate loans, with starting lending rates of 10%, appear to be higher priced than bank financing. But in reality, the lending rate isn't as pertinent for these loans, simply because they are not long-term financing. As it pertains to short-term loans of one or two years or less, you should consider them the same as you would for any other expenditure for the project. After you renovate and sell the home, recouping this expense is no different than recouping the expense for stainless steel appliances you installed in the property.

Furthermore, even individuals with low credit can still be eligible for a hard money mortgage. Arkansas City hard money lenders do not approve a loan solely judging by the customer's credit score — rather they will assess the property, where it is located and what it is worth, and the property's ability to pay back the loan by itself. Other factors that impact a person's approval for a hard money real estate loan can include the amount he is able to put into a down payment, his prior experience as a real estate investor, and price of similar, just recently sold homes in the vicinity.

So any time you come across a good and lucrative investment opportunity, relax knowing you will have a hard money lender in Arkansas City, willing to lend you the cash that you need. Fill out the form or give us a call and let's discuss your project.

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Investment property loans only please, no primary residences at this time.