Hard Money Loans in Atmore

A remarkable buy on a fix and flip opportunity located in an excellent area of the city shows up out of the blue — sounds too good to be true. You may have heard that competent home flippers, like the husband and wife on HGTV's Flip or Flop, have a remarkable average return of around $40,000 – $50,000. Undoubtedly, you also are aware that their successes are due to the fact that they are professionals, are well versed in hard money loans, they understand the marketplace quite well and additionally, they know how to work a public auction to buy their properties at a good deal. With that being said, you've also been brushing up your rehab and renovation skills, have a building contractor ready to go and are positive that you're capable of doing a stellar job for this house.

But financing can be a different problem entirely. A typical lender, say for example a bank, takes no less than one to two months to authorize the financing and release the capital. With the home owners wanting a fast closing, that doesn't appear like a good option to you in the slightest.

With banks establishing harder loan requirements in the last few years, it is now tougher for a self-employed person to find a home loan, especially if his credit circumstances are not flawless. So does this mean you have no option, but to abandon your dream to venture into home renovating? Absolutely not, because you also have the hard money loan option.

A hard money home loan in promises what's probably most desired by real estate investors — a very fast closing in as little as two weeks. Further, loans are made up to 70% loan-to-value of the as-is property's valuation, as deemed by a qualified appraiser. A number of people consider hard money real estate loans to be higher in price than ordinary financing, considering interest rates for such loans ordinarily start off at 10%. But usually, the interest rate isn't as relevant for these loans, simply because they are not long-term loans. When it comes to short-term loans of 1 or 2 years or less, you should think of them identical to any kind of other expenditure for the project. When you have sold the property or home and have made a positive financial gain, you're able to get back this expense from the home — much like recouping the money necessary for the brand-new kitchen appliances that you have put in.

Besides, hard money mortgages are not hard to qualify for, even in the event you have got less-than-perfect credit. As an alternative for focusing strictly on the person's credit score or source of income, hard money lenders, who could be a privately owned company or an individual, say yes to a loan as a result of evaluating the home value, its salability, where it is located, and the odds of recouping their capital if they have to foreclose the loan. Several other factors that affect an applicant's approval for a hard money real estate loan can include the amount he is in a position to put towards a down payment, his prior experience as a real estate investor, and price of comparable, recently sold homes in the area.

Finding a hard money lender in to fund your flipping business is not very hard, so long as the opportunity that lies before you is promising and possesses the right potential for returns. Complete the form or give us a call and let's discuss your property or properties.

Request More Information

A loan specialist will be in touch shortly

Personal Info

Project Info

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