Hard Money Loans in Augusta
Imagine you've come across this truly good deal on a fix and flip property you found in a terrific neighborhood, and you happen to be either a skilled real estate investor or a first-timer who really wants to try his hand at flipping. Professional residential home flippers, like the young couple on Flip or Flop, HGTV's reality flipping program, are able to bring in a gain of forty to fifty grand as an average on multiple occassions. Naturally, you also know that their results can be credited to the simple fact that they're professionals, are proficient in hard money loans, they understand the market really well and in addition, they are good at working a public auction for getting an appropriate price. Still, your rehab and remodeling skills aren't bad either — in any case, you've already located an ideal general contractor to handle the home.
But where do you find the necessary capital for home flipping? If you go after a traditional loan from the bank, you will wind up waiting somewhere around one to two months up until the mortgage is authorized and the money is accessible. Because most sellers wish to have a fast closing, it may be best to start seeking out other financing alternatives.
With banks bringing in more challenging loan guidelines in recent times, it has become tougher for a self-employed person to get a home loan, especially if his credit situation is not optimal. So must you stop trying and forego your dream to venture into fix and flips? Not at all, particularly while Augusta hard money loans enable you to realize many amazing things in the real estate market.
Should you opt for a hard money home loan in Augusta, you will get what's perhaps most essential to real estate transactions across the country — a quick closing of approximately fourteen days. Also, hard money lenders can do lending up to 70% LTV of the property's valuation, as calculated by a certified third-party evaluator. Some individuals regard hard money real estate loans to be higher in price than customary financing, considering interest rates for these loans often start at 10%. But if you understand these are not long-term mortgage loans, the rate tends to be misleading. When it comes to short-term loans of several years or less, you should consider them the same as you would for any other expense for your project. Once you have turned the home and have made a successful profit, you're able to recover this expense from the property or home — just like recuperating the cost of brand-new kitchen appliances that you put in.
Aside from that, hard money mortgages are not hard to qualify for, even if you have a bad credit score. Augusta hard money lenders do not approve a loan strictly judging by the applicant's credit score — instead they also look at the property or home, its location and value, and the property's capability to pay back the financing independent of the person. Other criteria that impact a person's eligibility for a hard money real estate loan include the amount he is able to put into a down payment, his previous experience as a real estate investor, and price of comparative, just recently sold properties nearby.
So should you come across an outstanding and lucrative flipping opportunity, be assured you'll have a hard money lender in Augusta, equipped to lend you the capital you may need. Complete the form or give us a call and let's discuss your project.
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