Hard Money Loans in Benbrook
A fabulous deal on a fix and flip property located in an excellent subdivision suddenly turns up — seems so good that it is hard to believe. Professional house flippers, similar to the young couple on Flip or Flop, HGTV's reality flipping program, are capable of bringing in a profit of forty to fifty grand for the majority of homes. Naturally, you also are aware that their results are credited to the fact that they're professionals, are well versed in hard money loans, they understand the market quite well and furthermore, they are good at working a public auction to purchase their houses at a reasonable deal. That said, you've also been cultivating your rehab and renovation skills, have a very good contractor ready for the project and are confident that you can do a great job for this house.
But how do real estate investors obtain funding? A traditional lender, say for example a bank, takes no less than 1-2 months to consent to the loan and deliver the capital. So if you're hoping for a fast closing, it is important you understand that this will cost you a few weeks, making you lose out on the sale.
To add to it, banks have already been tightening their lending requirements in recent years, making it hard for people to receive a conventional loan if their credit circumstances are not perfect or he does not possess a consistent salaried job. So will inadequate funding stop you from pursuing your dream? Certainly not, because you could always use the Benbrook hard money loan approach to pay for your home flipping project.
A hard money home loan in Benbrook boasts what's perhaps most sought after by real estate investors — a fast closing time of as few as 14 days. In addition, the LTV value can reach up to 70% of the property value, as determined by a certified appraiser. With the interest rates starting at about 10%, hard money real estate loans may seem, at first glance, to be higher priced in comparison with traditional bank loans. But the term lengths for these loans are fairly short, making the interest rate far less significant. The price of such short-term loans should be evaluated much like every other cost that you might encounter during the project. And once you've turned the property, recouping this expense is comparable to recouping the expense for all the kitchen and bath updates you did.
Aside from that, hard money mortgages are not hard to qualify for, regardless if you have poor credit. Benbrook hard money lenders don't approve a loan exclusively according to the applicant's credit score — instead they additionally analyze the property or home, its location and value, and the home's ability to pay back the loan independent of the applicant. On top of this, if the person can demonstrate prior experience in equivalent real estate ventures, can put down money towards a down payment, and the value of similar houses in the area works to his benefit, he will have a really good chance of being eligible to obtain a hard money real estate loan.
Locating a hard money lender in Benbrook to fund your renovation project is not difficult, as long as the opportunity in front of you is promising and boasts the right prospect for returns. Complete the form or give us a call to discuss the project you have in mind.
A loan specialist will be in touch shortly