Hard Money Loans in Belton
Imagine you've stumbled upon this excellent deal for a fix and flip property located in a terrific location, and you happen to be either a skilled real estate investor or a first-timer who wants to try out flipping homes. You've probably heard that professional property flippers, such as the married couple on HGTV's Flip or Flop, turn a remarkable average profit margin close to forty to fifty thousand dollars. And without a doubt, they are helped in a major way as a result of their professional experience, auction expertise and familiarity with hard money loans. However, you are assured that your superb rehab and renovation talents will help you do a superb job on the property — what's more, you already have arranged to have one of the best contractors in the business to take care of this job.
But where precisely can real estate investors find funding? When you approach a regular lender, like a bank for funding, it is more than likely going to take, at a minimum, thirty to sixty days for your acceptance to come through and the money to be distributed. Since the majority of home owners would prefer a fast closing, you might have to start searching for other funding alternatives.
To add to it, banks have been tightening their lending criteria in recent times, rendering it more tough for someone to receive a conventional home loan if their credit rating is not flawless or he doesn't have a regular salaried job. So must you admit defeat and abandon your dream to venture into real estate? By no means, on the grounds that you can always use the Belton hard money loan approach to finance your home flipping project.
A hard money home loan in Belton boasts what's probably most sought after by real estate investors — a very fast closing time of as few as a few weeks. Also, hard money lenders can do lending up to 70% LTV of the property or home's valuation, as identified by a professional third-party evaluator. A number of people regard hard money real estate loans to be higher in price than regular loans, because the interest rates of such loans often start off at 10%. But in reality, the interest rate is not as useful a measure for these loans, given that they are not long-term loans. The cost of such short-term loans should be considered on par with every other cost that you will encounter in the course of the project. After you renovate and unload the home, recovering this expense is just like recouping the one for home appliances you placed into the property.
Aside from that, hard money mortgages are easy qualifying, even if you posses very bad credit. Belton hard money lenders don't approve a loan strictly based on the applicant's credit score — rather they additionally evaluate the property, where it is located and what it is worth, and the home's capacity to pay back the financing independent of the person. On top of that, if the borrower can demonstrate past experience in similar real estate endeavors, can put down money for a down payment, and the price of equivalent houses in the area works to his benefit, he has got a really good shot of being eligible for a hard money real estate loan.
So if you have stumbled on a really great fixer-upper with a significant probability of returns, you have also found yourself a hard money lender in Belton that's happy to finance your rehab projects. Fill out the form on this page or get in touch with us via phone to talk about your property.
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