Hard Money Loans in Bellmead
There is this phenomenal opportunity to fix and flip this nice outdated property or home in a very good location and it seems a lot like the one you've been expecting for quite some time. Professional house flippers, like the young couple on Flip or Flop, HGTV's reality flipping program, are able to haul in a gain of forty to fifty grand on average. Without question, their rehabbing experience, knowledge of hard money loans, familiarity with the market, and auction talents have played a big part in their successes. Nonetheless, your rehab and renovation knowledge isn't that bad either — in any case, you have already identified an ideal contractor to handle the project.
But where can you obtain the needed financing for home flipping? For those who opt for a regular loan from the bank, you will end up waiting around somewhere around 4-8 weeks until eventually the money is approved and your money is available. Given that sellers would rather have a fast closing, it may be advisable to begin seeking out additional funding options.
Moreover, in case you have a less-than-perfect credit score or do not have a conventional source of income, it may be more difficult to be eligible for a a bank loan, considering the tighter loan guidelines banks have introduced recently. So will a shortage of funding stop you from following your dream? Absolutely not, seeing as you always have the Bellmead hard money loan option.
A hard money home loan in Bellmead offers what is considered vital to most real estate sales — a fast closing of just a 2-3 weeks and at many times less. In addition, the LTV value can range up to 70% of the home value, as determined by a competent appraiser. With lending rates starting around 10%, hard money real estate loans might appear, at first, to be more expensive in comparison with traditional bank financing. But in reality, the interest rate is not as relevant for these loans, simply because they aren't long-term financing. Short-term loans of a couple months to a few years are best thought of in terms of cost of capital, similar to all other costs involved with a project. After you fix up and sell off the home, recouping this expense is just like recouping the one for new kitchen appliances you put in the property.
Additionally, it's easy to be eligible for a hard money mortgage, regardless of whether your credit situation is not that extraordinary. Instead of focusing only on the borrower's credit score or income, Bellmead hard money lenders, who may be a private company or an individual, authorize a loan after examining the property value, its salability, where it is located, and the odds of recovering their money in the event of foreclosure. Other factors that impact a customer's acceptance for a hard money real estate loan can include how much he is in a position to put towards a down payment, his previous experience as a real estate investor, and price range of comparable, recently sold residences in the neighborhood.
Searching for a hard money lender in Bellmead to cover expenses for your real estate project is not very hard, provided that the opportunity in front of you is promising and possesses a strong prospect for returns. Fill out the form or get in touch with us via phone and let's discuss the project you have in mind.
A loan specialist will be in touch shortly