Hard Money Loans in Ashford

A fantastic bargain on a fix and flip opportunity in a good neighborhood suddenly shows up — sounds so good that it is difficult to believe. You may have heard that competent house flippers, much like the husband and wife on HGTV's Flip or Flop, turn a remarkable average profit of around forty to fifty thousand dollars. And sure, they are aided in a major way as a result of their professional know-how, auction skills and knowledge of hard money loans. However, you are assured that your first class rehab and renovation skills will assist you to do a superb job for this house — in addition, you already have lined up one of the most suggested contractors in the business to handle this job.

But funding can be a different problem entirely. When you meet with a regular lending institution, like a bank for a mortgage loan, it's likely going to take at least four to eight weeks for the approval to come through and your money to be furnished. With the sellers wanting a fast closing, that does not seem like a wise idea to you in the slightest.

On top of this, banks have already been tightening their lending criteria in recent years, which makes it hard for a person to receive a regular loan if their credit situation is not flawless or he does not have a regular salaried profession. So does this mean you are without an option, but to give up your aspiration to venture into the fix and flip business? Certainly not, seeing as you always have the hard money loan option.

A hard money home loan in promises what's possibly most sought after by real estate investors — a fast closing in as few as 14 days. Also, hard money lenders are able to do funding up to 70% LTV of the home value, as estimated by a licensed third-party evaluator. Some individuals regard hard money real estate loans to be more costly than customary loans, because the interest rates of such loans generally start off at 10%. But the term lengths for these loans tend to be comparatively short, making the interest rate much less important. The price tag on such short-term loans should be viewed much like any other cost that you might encounter in the course of the project. And as soon as you have turned the house, recouping this expense is comparable to recovering the expense for the bathroom upgrades you performed.

Also, it isn't difficult to qualify for a hard money mortgage, even if your credit score is not that impressive. As an alternative for focusing exclusively on the applicant's credit score or income, hard money lenders, who could be a private company or an individual person, say yes to a loan after assessing the home value, how easy it will be to market, where it is located, and the possibility of getting back their capital should they have to foreclose the loan. Additional factors that influence an individual's eligibility for a hard money real estate loan can include how much money he is able to put into a down payment, his prior experience being a real estate investor, and price of similar, fairly recently sold properties in the vicinity.

So any time you run into a good and profitable flipping opportunity, feel comfortable knowing you'll have a hard money lender in , in a position to loan you the funds that you need. Submit the form on this page or call us and let's talk about the project you have in mind.

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