Hard Money Loans in Belton
There's this outstanding possibility for rehabbing and flipping this nice old property or home in a fantastic location and it looks a lot like the deal you have been anticipating for a long time. Most folks know that skilled professional flippers, along the lines of Tarek and Christina El Moussa from HGTV's reality flipping program, Fix or Flop, can readily make a typical profit margin of $40,000 to $50,000 on their home projects. Naturally, you also are aware that their results can be attributed to the fact that they're experts, are well versed in hard money loans, they know the marketplace really well and in addition, they are good at working a public auction for getting a good price. Having said that, you have recently been brushing up your rehab and remodeling knowledge, have a very good contractor arranged and are certain that you can do a bang up job for this house.
But where do real estate investors find financing? When you meet with a regular lender, like a bank for a loan, it can take, at the very least, four to eight weeks for your approval to come through and the money to be sent out. With the home owners looking for a fast closing, that does not appear like a great idea to you in the slightest.
To add to it, banks have been tightening their lending criteria as of late, which makes it tough for a person to receive a regular loan if their credit circumstances are not flawless or he doesn't have a regular salaried profession. So should you give up and forego your desire to embark into real estate? Absolutely not, because you always have the Belton hard money loan alternative.
A hard money home loan in Belton provides what is considered vital to most real estate transactions — a fast closing of only a 2-3 weeks and more often than not less. Also, hard money lenders can do funding up to 70% LTV of the home's valuation, as determined by a credentialed third-party evaluator. On the surface, hard money real estate loans, with starting lending rates of 10%, appear to be more costly than bank lending options. But the lengths of these loans tend to be comparatively shorter, which makes the rate less important. The price of such short-term loans should be looked at much like every other expenditure that you would need to meet for the project. And as soon as you have flipped the property, recouping this expense is comparable to recuperating the expense for the bathroom upgrades you performed.
What's more, it is simple to obtain a hard money mortgage, regardless if your credit situation is not that extraordinary. As an alternative for focusing solely on the person's credit score or net income, Belton hard money lenders, who could be a privately owned company or an individual, say yes to a loan after evaluating the property value, its salability, its location, and the probability of getting back their money should they have to foreclose the loan. The amount that a borrower can put down beforehand for the property or home, how much experience he has in real estate investing, and selling price of comparable properties in the vicinity are additional factors that go into determining a person's suitability for a hard money real estate loan.
Finding a hard money lender in Belton to finance your real estate project is not hard, assuming that the opportunity that lies ahead of you is promising and offers a strong potential for returns. Submit the contact form on this page or give us a call to discuss your property.
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