Hard Money Loans in Bowdon
An incredible deal on a fix and flip opportunity located in a nice neighborhood all of a sudden shows up — sounds too good to be true. You may have heard that competent house flippers, like the married couple on HGTV's Flip or Flop, turn a remarkable average profit margin near forty to fifty thousand dollars. And without a doubt, they are aided in a major way as a result of their professional know-how, auction abilities and familiarity with hard money loans. Still, your rehab and remodeling skills aren't bad either — besides, you've already found a good building contractor to tackle the job.
But where precisely do real estate investors obtain funding? A conventional lending institution, say for example a bank, takes at the very least 1 to 2 months to consent to the loan and release the cash. So if you are anticipating a fast closing, it is important to understand or know that this may cost you weeks, causing you to miss out on the home.
With banks introducing tougher loan guidelines in the recent past, it is now much harder for a self-employed person to get a home loan, especially if his credit score is not optimal. So should you give up and forego your dream to venture off into real estate? By no means, on the grounds that you can always go the Bowdon hard money loan route to pay for your rehab project.
A hard money home loan in Bowdon offers what's viewed as essential to many real estate transactions — a fast closing of only a few weeks and oftentimes less. Also, hard money lenders are capable of doing lending up to 70% LTV of the property's valuation, as estimated by a licensed third-party appraiser. Some individuals consider hard money real estate loans to be higher priced than ordinary financing, since the interest rates for these loans commonly start out at 10%. But the term lengths for these loans tend to be quite shorter, which means the interest rate is far less important. Short-term loans of a couple of months to a few years are best looked at as cost of capital, the same as any other expense involved with a project. When you have sold the house and have made a successful profit, you'll be able to recover this expense from the property or home — much like recovering the cost of brand-new kitchen appliances that you put in.
Moreover, even an individual with low credit can easily qualify for a hard money mortgage. Instead of focusing exclusively on the applicant's credit score or wages, Bowdon hard money lenders, who could be a private company or an individual, authorize a loan as a result of assessing the property value, its marketability, where it is located, and the odds of recouping their money in case of foreclosure. How much of their own money an individual can put down beforehand for the house, his past real estate experience, and selling price of comparable homes in the same neighborhood are various other factors that go into determining a person's suitability for a hard money real estate loan.
So in the event you come across a really good and profitable flipping opportunity, rest assured you'll have a hard money lender in Bowdon, ready to loan you the funds that you need. Enter your info into the contact form or get in touch with us via phone to talk about the property or properties you have in mind.
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