Hard Money Loans in Barnesville
Imagine you've encountered this really great deal on a fix and flip property in an ideal neighborhood, and you happen to be either a seasoned real estate investor or a newbie who is looking to try his hand at flipping. Many people know that capable professional flippers, like Tarek and Christina El Moussa who star in HGTV's reality flipping show, Fix or Flop, can generate a typical profit margin of forty to fifty thousand dollars on their flips. It's fair to say their past experiences rehabbing, understanding of hard money loans, expertise in their market, and auction skills have played a significant role in their success. Still, your rehab and remodeling knowledge isn't bad either — in any case, you have already identified a suitable contractor to tackle the home.
But where do real estate investors obtain financing? A typical lender, say for example a bank, takes no less than 1-2 months to authorize the financing and release the money. Thus if you are hoping for a fast closing, you need to be aware that this could cost you a couple of weeks, making you miss out on the sale.
To add to it, banks have already been tightening their lending criteria in recent times, making it tough for a person to get an ordinary home loan if their credit circumstances are not flawless or he does not possess a regular salaried job. So does this mean you have no option, but to drop your ambition to venture into home flipping? Never, considering that you can always use the Barnesville hard money loan approach to fund your flipping project.
When you put in an application for a hard money home loan in Barnesville, you'll get what's perhaps most vital to real estate purchases across the country — a quick closing of roughly 14 days. Besides that, hard money lenders will often consent to loans up to 70% LTV of the property's valuation, as identified by a credentialed third-party evaluator. At first glance, hard money real estate loans, with starting lending rates of 10%, could be seen as more costly than bank lending products. But once you appreciate that these are not long-term loans, the rate can be misleading. As it pertains to short-term loans of several years or less, you should think about them just like you would other expenditures for your project. And when you have flipped the house, recouping this expense is the exact same as recouping the expense for all the bathroom or other updates you did.
Moreover, even an individual with weak credit will be able to qualify for a hard money mortgage. The borrower's credit score will not be the exclusive deciding factor for Barnesville hard money lenders — they also analyze the property, its market valuation, its location, and its capacity to earn back their investment if things do not work out as intended. Several other criteria that affect a borrower's approval for a hard money real estate loan include what amount of money he is able to put towards a down payment, his past experience as a real estate investor, and price of comparative, recently sold homes in the vicinity.
So any time you run into an outstanding and profitable investment opportunity, feel comfortable knowing you will have a hard money lender in Barnesville, ready to loan you the capital you will need. Complete the contact form or get in touch with us via phone to discuss the property you have in mind.
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