Hard Money Loans in Bowie
Imagine you've run across this excellent bargain on a fix and flip property located in an ideal location, and you are either a seasoned real estate investor or a newbie who wants to try out flipping houses. You may have heard that veteran house flippers, like the husband and wife on HGTV's Flip or Flop, have an impressive average profit margin of around forty to fifty thousand dollars. Naturally, you also realize that their results are credited to the fact that they're industry experts, are well versed in hard money loans, they know the market quite well and additionally, they know how to work an auction to buy their properties at an appropriate deal. With that being said, you've also been developing your rehab and renovation skills, have a very good general contractor ready for the project and are certain that you can do an impressive job for this property.
But how exactly do real estate investors obtain funding? For those who meet with a standard lending institution, like a bank for a loan, it's more than likely going to take, as a minimum, 30-60 days for the approval to come through and the funds to be distributed. With all the sellers wanting a fast closing, that doesn't seem like a good idea to you in the slightest.
To add to it, banks have been tightening their lending criteria as of late, which makes it hard for someone to get an ordinary home loan if their credit rating is not flawless or he does not have a consistent salaried job. So do you have to admit defeat and forego your desire to venture off into fix and flips? By no means, because you could always go the Bowie hard money loan route to finance your flipping project.
A hard money home loan in Bowie provides what is possibly most sought after by real estate investors — a fast closing in as little as two weeks. And additionally, financing can be done for up to 70% loan-to-value of the as-is valuation, as determined by a professional appraiser. With loan rates starting out around 10%, hard money real estate loans may seem, at first glance, to be more expensive as compared with conventional bank financing. But the term lengths for these loans are relatively short, which makes the rate less important. Short-term loans of a couple months to a few years are best understood in terms of cost of capital, similar to every other expense in connection with a project. And as soon as you've flipped the property or home, recuperating this expense is comparable to recouping the expense for all the bathroom or other updates you did.
Besides, hard money mortgages are not hard to qualify for, even if you have less-than-perfect credit. The applicant's credit score will not be the primary determining factor for Bowie hard money lenders — they also look at the property, how much it is worth, where it is located, and its potential to bring back their investment if things do not go as intended. Other factors that have an impact on a borrower's acceptance for a hard money real estate loan include how much money he can put into a down payment, his former experience being a real estate investor, and selling price of comparative, recently sold properties in the area.
Locating a hard money lender in Bowie to fund your fix and flip endeavor is not very hard, as long as the opportunity that lies ahead of you is promising and boasts a good prospect for returns. Complete the contact form or give us a call and let's talk about your project.
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