Hard Money Loans in Athens
Imagine you've stumbled upon this excellent bargain on a fix and flip property you found in an ideal location, and you happen to be either a seasoned real estate investor or a newbie who really wants to try his hand at flipping. Everybody knows that skilled professional flippers, along the lines of Tarek and Christina El Moussa who do HGTV's reality home flipping show, Fix or Flop, can make an average profit margin of $40,000 to $50,000 in their rehab business. It's fair to say their past experiences rehabbing, knowledge of hard money loans, familiarity with the housing market, and auction talents have been major factors to their successes. Nonetheless, your rehab and renovation skills aren't that bad either — besides, you've already located an ideal general contractor to handle this project.
But money is usually a different problem entirely. For those who opt for a traditional bank loan, you will end up waiting roughly 4-8 weeks before the financing is authorized and the funding is available. Considering that all the sellers are looking for a fast closing, that does not appear to be a great idea to you at all.
On top of this, banks have been tightening their lending requirements in recent times, rendering it more hard for someone to receive a regular loan if their credit circumstances are not flawless or he does not have a regular salaried profession. So does this leave you with no option, but to drop your ambition of venturing into home flipping? Never, due to the fact you can always go the Athens hard money loan route to finance your home renovating project.
A hard money home loan in Athens provides you with what is possibly most sought after by real estate investors — a fast closing time of as few as two weeks. In addition, the LTV value can range up to 70% of the home value, as estimated by a credentialed appraiser. With rates starting at about 10%, hard money real estate loans might appear, at first glance, to be more costly compared to traditional bank loans. But the time frames of these loans are much shorter, which means the interest rate is less significant. As it pertains to short-term loans of one or two years or even less, you should think of them identical to any sort of other expenditure for the project. Once you've resold the property and have made a successful gain, you can get back this expense from the property or home — similar to recuperating the money necessary for the brand-new appliances for the kitchen that you have installed.
In addition, even individuals with poor credit can still qualify for a hard money mortgage. The customer's credit score is not the exclusive determining factor for Athens hard money lenders — they also examine the piece of real estate, what is it valued at, where it is located, and its potential to bring back their investment if everything does not work out as intended. Other criteria that impact a borrower's approval for a hard money real estate loan include what amount of money he can put into a down payment, his prior experience being a real estate investor, and selling price of comparable, fairly recently sold homes in the area.
So any time you come across an outstanding and profitable investment opportunity, be assured you will have a hard money lender in Athens, able to lend you the capital you'll need. Fill out the form on this page or give us a call to discuss the project you have in mind.
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