Hard Money Loans in Athens
A fabulous deal on a fix and flip opportunity in a nice subdivision shows up out of the blue — seems too good to be true. Everybody knows that skilled professional flippers, such as Tarek and Christina El Moussa who do HGTV's reality home flipping program, Fix or Flop, are able to generate a typical profit margin of forty to fifty thousand dollars in their rehab business. No need to explain that their rehabbing experience, knowledge of hard money loans, familiarity with the housing market, and auction skills have played a big part in their success. That said, you've recently been brushing up your rehab and renovation knowledge, have a very good building contractor ready to go and are positive that you will be able to do a stellar job for this home.
But where can you find the needed financing for flipping? A conventional lender, like for example a bank, takes at the very least 1-2 months to consent to the mortgage and deliver the money. With the sellers wanting a fast closing, that does not seem like a good idea to you whatsoever.
With banks adding more challenging loan requirements in recent years, it is now more difficult for a self-employed person to find a home loan, particularly if his credit situation is not perfect. So does this leave you with no option, but to drop your aspiration to venture into home renovating? Not at all, particularly when Athens hard money loans will assist you to accomplish great things in real estate.
A hard money home loan in Athens provides you with what's perhaps most crucial to real estate investors — a fast closing time period of as little as 2 weeks. In addition, the LTV value can go up to 70% of the property's valuation, as evaluated by a certified appraiser. With interest rates starting out near 10%, hard money real estate loans might seem, at first, to be more costly compared to conventional bank loans. But the term lengths for these loans are relatively shorter, which means the rate is much less significant. As it pertains to short-term loans of a handful of years or less, you should consider them just like you would other expenses for your project. And as soon as you have finally flipped the property or home, recouping this expense is comparable to recovering the expense for all the bathroom or other improvements you did.
Aside from that, hard money mortgages are not hard to qualify for, even in the event you have got below-average credit. The customer's credit score isn't the sole determining factor for Athens hard money lenders — they also evaluate the piece of real estate, what is it valued at, where it is located, and its ability to return their financial commitment if everything does not work out as intended. Other variables that influence an individual's approval for a hard money real estate loan can include the amount he is able to put towards a down payment, his former experience as a real estate investor, and selling price of similar, just recently sold homes in the vicinity.
So in case you have found a wonderful fixer-upper with a significant potential for returns, you've also discovered a hard money lender in Athens that's ready to finance your rehab project. Submit the contact form or call us and let's discuss your property or properties.
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