Hard Money Loans in Bowie
A remarkable bargain on a fix and flip opportunity located in a very good area of the city all of a sudden shows up — sounds so good that it is difficult to believe. You may have heard that veteran home flippers, much like the husband and wife on HGTV's Flip or Flop, turn a remarkable average profit margin of around forty to fifty thousand dollars. Undoubtedly, you also know that their great results can be attributed to the fact that they are professionals, are well versed in hard money loans, they understand market trends really well and in addition, they are good at working a public auction for getting an appropriate price. Having said that, you've likewise been cultivating your rehab and renovation knowledge, have got a licensed contractor lined up and are certain that you will be able to do an impressive job on this property.
But how do real estate investors get funds? In the event you approach a common lending institution, much like a bank for a mortgage loan, it's in all likelihood going to take, at the very least, four to eight weeks for the approval to be completed and your funds to be sent out. Because most sellers favor a fast closing, you might need to start looking for other funding alternatives.
With banks introducing tougher loan criteria in recent times, it has become tougher for a self-employed individual to find a mortgage loan, especially when his credit circumstances are not flawless. So does this leave you with no other option, but to abandon your dream of getting into rehabbing? Not at all, particularly when Bowie hard money loans can help you achieve great things in the real estate market.
If you should get a hard money home loan in Bowie, you'll get what's possibly most essential to real estate transactions throughout the country — a very fast closing of roughly a couple weeks. Also, hard money lenders can approve funding up to 70% LTV of the home's valuation, as calculated by a credentialed third-party evaluation. Some individuals regard hard money real estate loans to be costlier than customary financing, considering lending rates for such loans commonly start out at 10%. But if you consider these loans are not long-term mortgage loans, the interest rate tends to be misleading. As it pertains to short-term loans of 1 or 2 years or even less, you should consider them much like you would other expenses for your project. And as soon as you have finally turned the property or home, recovering this expense is comparable to recovering the expense for the kitchen and bath updates you did.
Moreover, even a person with poor credit will be able to qualify for a hard money mortgage. As an alternative for focusing entirely on the applicant's credit score or wages, Bowie hard money lenders, who may be a private company or an individual person, approve a loan after examining the property value, how easy it will be to market, where it is located, and the likelihood of recouping their money if they have to foreclose the loan. Other factors that affect an applicant's approval for a hard money real estate loan include what amount of money he is in a position to put towards a down payment, his prior experience as a real estate investor, and price range of comparative, recently sold homes in the vicinity.
So any time you come across a very good and profitable flipping opportunity, be assured you'll have a hard money lender in Bowie, able to lend you the money that you need. Fill out the contact form on this page or call us to talk about your property or properties.
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