Hard Money Loans in Bladensburg
Suppose that you've run into this truly good bargain for a fix and flip property you found in an ideal location, and you're either a skilled real estate investor or a first-timer who wants to try out flipping homes. A majority of people know that capable professional flippers, like Tarek and Christina El Moussa who do HGTV's reality flipping series, Fix or Flop, can turn a typical profit margin of $40,000 to $50,000 on their home projects. Of course, you also recognize that their great results are credited to the fact that they are professionals, are well versed in hard money loans, they understand market trends quite well and additionally, they are good at working an auction to buy their houses at an appropriate price. However, you're assured that your impressive rehab and remodeling abilities will help you do a superb job on this project — furthermore, you already have arranged to have one of the most sought after building contractors in the business to take care of this job.
But funding can be a different question altogether. Should you go after a traditional loan from the bank, you will end up waiting somewhere around 30-60 days up until the money is approved and your funds are readily available. Considering that all the home owners are wanting to find a fast closing, that doesn't appear like a good idea to you whatsoever.
With banks bringing in tougher loan requirements in the last few years, it is now harder for a self-employed person to obtain a mortgage loan, particularly if his credit situation is not flawless. So will inadequate financing keep you from sticking to your dream? Certainly not, because you could always go the Bladensburg hard money loan route to pay for your flipping project.
A hard money home loan in Bladensburg can provide what's viewed as essential to many real estate sales — a quick closing of just a couple of weeks and oftentimes even less. Furthermore, hard money lenders will often consent to lending up to 70% LTV of the property or home value, as established by a certified third-party evaluator. With rates starting near 10%, hard money real estate loans might seem, initially, to be more costly in comparison with traditional bank loans. But in reality, the interest rate isn't as pertinent for these loans, because they will never be long-term loans. As it pertains to short-term loans of a handful of years or even less, you should think of them just like you would other expenses for the project. And when you have flipped the home, recouping this expense is the exact same as recouping the expense for the bathroom improvements you performed.
Additionally, it isn't difficult to be eligible for a hard money mortgage, regardless of whether your credit situation is not that superb. Bladensburg hard money lenders do not take on a loan exclusively based on the applicant's credit score — instead they additionally look at the property or home, its valuation and location, and the home's capacity to pay back the loan by itself. Other factors that have an impact on a person's eligibility for a hard money real estate loan can include how much he can put into a down payment, his former experience being a real estate investor, and selling price of similar, recently sold residences in the area.
So any time you run into a good and lucrative flipping opportunity, be assured you will have a hard money lender in Bladensburg, ready to lend you the capital you may need. Fill out the form or call us to talk about your project.
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