Hard Money Loans in Bastrop
Suppose that you've run into this truly good bargain for a fix and flip property located in a great location, and you're either a seasoned real estate investor or a newbie who really wants to try his hand at flipping. Most folks know that expert professional flippers, such as Tarek and Christina El Moussa who do HGTV's reality home flipping show, Fix or Flop, are able to turn an average profit margin of $40,000 to $50,000 when they flip properties. Of course, you also are aware that their success can be attributed to the simple fact that they are experts, are well versed in hard money loans, they know the marketplace really well and they also are good at working an auction to purchase their homes at a good price. Having said that, you've likewise been brushing up your rehab and remodeling skills, have got a building contractor ready to go and are positive that you can do a bang up job on this property.
But funding can be a different question entirely. In the event you approach a customary lender, such as a bank for funding, it's in all likelihood going to take no less than thirty to sixty days for your acceptance to come through and the money to be distributed. Because most sellers give preference to a fast closing, you may want to start searching for additional funding options.
To add to it, banks have already been tightening their lending requirements as of late, which makes it difficult for someone to receive a typical loan if their credit score is not perfect or he doesn't have a regular salaried occupation. So must you stop trying and abandon your desire to venture off into the real estate market? By no means, especially while Bastrop hard money loans will assist you to achieve great things in real estate.
If you should get a hard money home loan in Bastrop, you will get what is possibly most vital to real estate purchases throughout the country — a very fast closing of around 2 weeks. Furthermore, hard money lenders are capable of doing loans up to 70% LTV of the property or home's valuation, as determined by a credentialed third-party appraiser. At first, hard money real estate loans, with starting interest rates of 10%, could be seen as more pricey than bank financing. But in reality, the rate of interest isn't as useful a measure for these loans, since they aren't long-term loans. Short-term loans of several months to a few years are best understood as cost of capital, the same as all other expenditures in connection with a project. Once you have turned the house and have made a positive return, you're able to recoup this expense from the house — very much like recouping the money necessary for the brand-new appliances for the kitchen that you installed.
Also, it's easy to qualify for a hard money mortgage, regardless of whether your credit rating is not that extraordinary. Bastrop hard money lenders do not take on a loan exclusively according to the customer's credit score — instead they also evaluate the home, its location and value, and the home's capability to pay back the loan without the assistance of the borrower. Additional factors that have an impact on a borrower's approval for a hard money real estate loan include how much he can put into a down payment, his past experience being a real estate investor, and selling price of comparable, just recently sold residences in the neighborhood.
So in the event you come across a really good and lucrative flipping opportunity, relax knowing you'll have a hard money lender in Bastrop, in a position to loan you the money you'll need. Fill out the contact form on this page or give us a call to talk about your property.
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