Hard Money Loans in Birmingham

Imagine you've run into this really great deal on a fix and flip property located in an ideal neighborhood, and you're either a seasoned real estate investor or a newbie who is looking to try out flipping homes. You've probably heard that professional property flippers, much like the couple on HGTV's Flip or Flop, turn a remarkable average profit margin of around $40,000 – $50,000. No need to explain that their past experiences rehabbing, understanding of hard money loans, familiarity with the market, and auction skills have had a significant role in their success. Still, your rehab and renovation skills aren't bad either — in any case, you have already located an ideal building contractor to start the home.

But where precisely can real estate investors get funds? A typical lender, like for example a bank, takes at the very least 1 to 2 months to approve the financing and release the money. So if you will be wishing for a fast closing, you need to understand that this will set you back by a couple of weeks, making you miss out on the home.

To add to it, banks have been tightening up their lending standards in recent times, making it tough for a person to get a typical home loan if their credit situation is not flawless or he is lacking a regular salaried profession. So does that mean you are without an option, but to give up your aspiration of getting into the fix and flip business? Absolutely not, seeing as you always have the Birmingham hard money loan alternative.

If you should obtain a hard money home loan in Birmingham, you'll get what is perhaps most important to real estate transactions across the country — a fast closing of roughly fourteen days. What's more, the LTV value can range up to 70% of the property value, as determined by a credentialed appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, appear to be more costly than bank lending options. But once you appreciate that these are not long-term home loans, the interest rate may be misleading. Short-term loans of several months to a handful of years are best thought of in terms of cost of capital, the same as every other expense in connection with a project. And once you've flipped the home, recovering this expense is comparable to recovering the expense for all the kitchen and bath upgrades you performed.

Apart from this, hard money mortgages are easy qualifying, even when you have poor credit. Instead of focusing exclusively on the person's credit score or wages, Birmingham hard money lenders, who may be a privately owned company or an individual person, approve a loan after evaluating the property value, ease of marketability, its location, and the probability of getting back their money if they have to foreclose the loan. Adding to this, if the applicant can demonstrate past experience in comparable real estate ventures, can place down cash towards the down payment, and the cost of comparable homes in the area works to his benefit, he has a very good chance of qualifying to obtain a hard money real estate loan.

Searching for a hard money lender in Birmingham to fund your fix and flip endeavor is not hard, as long as the opportunity in front of you is promising and has the right potential for returns. Enter your info into the contact form on this page or call us and let's talk about your project.

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Investment property loans only please, no primary residences at this time.