Hard Money Loans in Beatrice
Suppose you've stumbled upon this really great bargain for a fix and flip property located in an ideal location, and you happen to be either a skilled real estate investor or a first-timer who wants to try his hand at flipping. Many people know that capable professional flippers, along the lines of Tarek and Christina El Moussa who star in HGTV's reality flipping show, Fix or Flop, are able to earn a typical profit margin of forty to fifty thousand dollars on their home projects. Naturally, you also recognize that their successes are attributed to the fact that they're experts, are well versed in hard money loans, they understand market trends quite well and furthermore, they are good at working an auction for getting a reasonable deal. Having said that, you have also been cultivating your rehab and renovation skills, have got a building contractor ready to go and are certain that you're capable of doing a stellar job for this home.
But how do you obtain the needed funding for home flipping? For those who apply for an ordinary bank loan, you will need to wait around approximately 4-8 weeks until the money is approved and your money is readily available. So if you are looking for a fast closing, you must be aware that this will set you back by a couple weeks, making you miss out on the sale.
Furthermore, if you have an unfavorable credit situation or don't have a regular income source, it can be more challenging to obtain bank financing, considering the stricter loan criteria banks have introduced lately. So does that leave you with no option, but to abandon your ambition to venture into home renovating? Never, because you can always go the Beatrice hard money loan route to finance your home flipping project.
A hard money home loan in Beatrice gives you what's probably most crucial to real estate investors — a fast closing in as few as a few weeks. Furthermore, hard money lenders will often consent to lending up to 70% LTV of the home value, as calculated by a licensed third-party evaluation. At first, hard money real estate loans, with starting interest rates of 10%, appear to be more expensive than bank financing. But once you understand these are not long-term mortgage loans, the rate can be misleading. When it comes to short-term loans of 1 or 2 years or less, you should consider them much like you would other expenses for the project. When you have turned the property and have made a successful financial gain, you can get back this expense from the property or home — much like recuperating the cost of brand-new appliances for the kitchen that you installed.
Besides, hard money mortgages are easy qualifying, even when you have bad credit. Beatrice hard money lenders don't approve a loan solely judging by the person's credit score — rather they additionally evaluate the home, its location and value, and the property's capacity to pay back the loan by itself. The amount that a borrower can put down in advance for the house, how much practical experience he has in real estate investing, and selling price of equivalent properties in the area are various other details that go into establishing a person's eligibility for a hard money real estate loan.
So any time you come across a very good and profitable flipping opportunity, rest assured you will have a hard money lender in Beatrice, able to lend you the cash that you need. Enter your info into the form on this page or give us a call to discuss your property.
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