Hard Money Loans in Bellaire
Suppose that you've stumbled upon this really great bargain for a fix and flip property you found in a great location, and you happen to be either a skilled real estate investor or a newbie who hopes to try his hand at flipping. Professional property flippers, similar to the young couple on Flip or Flop, HGTV's reality flipping series, are able to generate a profit of $40-$50k on average. Undoubtedly, you also know that their results are due to the fact that they're professionals, are proficient in hard money loans, they know market trends quite well and they also know how to work a public auction for getting a good deal. Nonetheless, your rehab and remodeling knowledge isn't that bad either — in any case, you have already found the right building contractor to tackle this home.
But where do you find the needed financing for home flipping? For those who go after a traditional bank loan, you will end up waiting around roughly 4-8 weeks before the loan is authorized and your funds are ready to go. Thus if you are wishing for a fast closing, it's important for you to realize that this could set you back by a few weeks, making you lose out on the sale.
On top of this, banks have been tightening their lending standards in recent years, rendering it more hard for a person to receive a regular loan if their credit score is not flawless or he does not have a regular salaried occupation. So does this leave you with no option, but to give up your aspiration to venture into the fix and flip business? Not at all, especially while Bellaire hard money loans can help you realize great things in the real estate market.
A hard money home loan in Bellaire provides what is possibly most desired by real estate investors — a fast closing time of as little as two weeks. Additionally, loan amounts can be done for up to 70% loan-to-value of the as-is house's valuation, as established by a licensed appraiser. A number of people consider hard money real estate loans to be more pricey than customary loans, because the interest rates of such loans commonly start out at 10%. But usually, the lending rate is not as useful a measure for these loans, since they aren't long-term loans. When it comes to short-term loans of one or two years or less, you should consider them much like you would other expenditures for your project. Once you have sold the property or home and have made a positive gain, you can recoup this expense from the home — similar to recouping the money spent on the brand-new home appliances that you've installed.
Aside from that, hard money mortgages are not difficult to qualify for, even if you have poor credit. The applicant's credit score isn't the exclusive determining factor for Bellaire hard money lenders — they also analyze the house, its market value, its location, and its ability to earn back their financial commitment if everything does not work out as intended. Other variables that have an impact on a person's approval for a hard money real estate loan can include how much money he is in a position to put towards a down payment, his previous experience being a real estate investor, and price of comparative, recently sold homes in the vicinity.
Locating a hard money lender in Bellaire to finance your flipping business is not very hard, so long as the opportunity before you is promising and possesses a strong potential for returns. Enter your info into the form or get in touch with us via phone and let's discuss your property.
A loan specialist will be in touch shortly