Hard Money Loans in Baytown
There's this outstanding opportunity to rehab and flip this wonderful old condo in a good location and it seems a lot like the one you have been wanting for quite a while. Professional house flippers, similar to the young married couple on Flip or Flop, HGTV's reality flipping series, are capable of hauling in a gain of $40-$50k on average. Naturally, you also recognize that their great results are credited to the fact that they're industry experts, are well versed in hard money loans, they know market trends quite well and they also know how to work an auction for getting a good deal. On the other hand, you're convinced that your superb rehab and remodeling abilities will help you do an outstanding job on the project — what's more, you have already lined up one of the best contractors in town to work on this project.
But funding is a separate problem entirely. A standard lending institution, like for example a bank, takes at a minimum 1-2 months to approve the loan and release the money. With the sellers seeking a fast closing, that doesn't appear to be a good option to you at all.
With banks introducing tougher loan standards in the past several years, it's become more difficult for a self-employed person to obtain a home loan, especially when his credit score is not perfect. So does that leave you with no other option, but to give up your ambition of getting into the fix and flip business? Absolutely not, seeing as you also have the Baytown hard money loan alternative.
A hard money home loan in Baytown gives you what's probably most desired by real estate investors — a fast closing time of as little as a few weeks. What's more, the LTV value can range up to 70% of the place's valuation, as evaluated by a competent appraiser. With rates starting out at about 10%, hard money real estate loans may seem, at first glance, to be more costly compared to conventional bank financing. But usually, the lending rate is not as relevant for these loans, given that they will never be long-term financing. As it pertains to short-term loans of a few years or even less, you should consider them just like you would other expenses for your project. And when you've turned the property or home, recovering this expense is comparable to recovering the expense for the bathroom or other improvements you did.
Furthermore, even individuals with bad credit can easily qualify for a hard money mortgage. Rather than focusing strictly on the person's credit score or wages, Baytown hard money lenders, who can be a privately owned company or an individual, say yes to a loan as a result of assessing the home value, its marketability, where it is located, and the likelihood of recovering their capital should they have to foreclose the loan. Several other criteria that influence an applicant's acceptance for a hard money real estate loan include how much money he is able to put into a down payment, his past experience being a real estate investor, and selling price of comparable, recently sold properties in the vicinity.
Searching for a hard money lender in Baytown to help with expenses for your real estate project is not difficult, as long as the opportunity that lies ahead of you is promising and possesses a good potential for returns. Submit the contact form or give us a call to discuss your property or properties.
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