Hard Money Loans in Birmingham
An incredible bargain on a fix and flip property in a nice area of the city all of a sudden shows up — sounds too good to be true. Everybody knows that skilled professional flippers, such as Tarek and Christina El Moussa who star in HGTV's reality flipping program, Fix or Flop, can generate a typical profit of $40,000 to $50,000 in their rehab business. No need to explain that their rehabbing experience, understanding of hard money loans, expertise in their housing market, and auction talents have had a big part in their success. On the other hand, you're convinced that your impressive rehab and remodeling knowledge will help you do a superb job on this property — what's more, you already have arranged to have one of the best building contractors in town to work on the project.
But where can you find the needed financing for flipping? When you go after a traditional loan from the bank, you will wind up waiting approximately 1 to 2 months until eventually the mortgage loan is authorized and the funds are ready to go. So if you're anticipating a fast closing, it is important you recognize that this could set you back by a few weeks, making you lose out on the home.
To add to it, banks have been tightening their lending standards in recent years, making it hard for a person to obtain a typical loan if their credit rating is not flawless or he doesn't have a consistent salaried job. So will a shortage of financing prevent you from pursuing your dream? Never, because you can always use the Birmingham hard money loan approach to fund your home flipping project.
A hard money home loan in Birmingham provides what's considered crucial to most real estate sales — a quick closing of just a 2-3 weeks and oftentimes less. Further, financing is made up to 70% loan-to-value of the as-is value, as determined by a qualified appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, seem to be higher in price than bank financing. But when you consider these are not long-term loans, the interest rate can be misleading. The price of such short-term loans should be viewed on par with any other expenditure that you would have to meet pertaining to the project. And when you've sold the house, recuperating this expense is comparable to recovering the expense for all the bathroom or other upgrades you performed.
What's more, it isn't difficult to be eligible for a hard money mortgage, regardless if your credit rating is not that superb. As an alternative for focusing exclusively on the person's credit score or wages, Birmingham hard money lenders, who may be a private company or an individual person, authorize a loan after evaluating the home value, ease of marketability, where it is located, and the possibility of recovering their capital in case they have to foreclose the loan. On top of this, if the individual can demonstrate prior experience in similar real estate endeavors, can place down money for a down payment, and the value of comparable houses in the neighborhood works in his favor, he will have a good chance of qualifying to obtain a hard money real estate loan.
Locating a hard money lender in Birmingham to fund your flipping business is not difficult, assuming that the opportunity before you is promising and boasts the right prospect for returns. Fill out the contact form on this page or get in touch with us via phone and let's talk about your property or properties.
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