Hard Money Loans in Brackenridge
Imagine you've come across this really great deal for a fix and flip property you found in an ideal location, and you happen to be either a skilled real estate investor or a newbie who wants to try out flipping houses. You've heard that veteran home flippers, such as the husband and wife on HGTV's Flip or Flop, have a remarkable average profit margin close to forty to fifty thousand dollars. Undoubtedly, you also are aware that their successes can be attributed to the simple fact that they are professionals, are well versed in hard money loans, they understand the market quite well and they also know how to work a public auction to buy their houses at a good deal. However, you're certain that your first class rehab and renovation abilities will help you do an outstanding job for this project — in addition, you already have arranged to have one of the best building contractors in town to work on this project.
But how exactly can real estate investors find money? When you meet with a regular lending institution, such as a bank for funding, it can take no less than thirty to sixty days for the approval to come through and the funds to be distributed. So if you will be looking for a fast closing, you must understand or know that this will set you back by a few weeks, making you miss out on the home.
With banks introducing tougher loan criteria in the past several years, it is now more difficult for a self-employed person to find a mortgage loan, especially if his credit circumstances are not flawless. So does this mean you are without an option, but to drop your dream of venturing into flipping? Certainly not, given that you always have the Brackenridge hard money loan option.
A hard money home loan in Brackenridge gives you what's probably most sought after by real estate investors — a fast closing in as little as 2 weeks. Also, hard money lenders are able to do funding up to 70% LTV of the property or home value, as identified by a qualified third-party evaluator. On the surface, hard money real estate loans, with starting interest rates of 10%, could be seen as more expensive than bank financing. But usually, the rate of interest is not as pertinent for these loans, because they aren't long-term financing. The price of such short-term loans should be viewed on par with any other financial outlay that you would have to meet for the project. And when you have turned the property or home, recuperating this expense is comparable to recuperating the expense for all the kitchen and bath updates you did.
Aside from that, hard money mortgages are easy qualifying, even when you have got a weak credit score. The borrower's credit score isn't the sole deciding factor for Brackenridge hard money lenders — they also analyze the house, how much it is worth, where it is located, and its capability to bring back their financial commitment if everything does not go as intended. How much a borrower can put down in advance towards the home, how much practical experience he has in real estate investments, and price range of comparative homes in the area are additional factors that go into analyzing a person's suitability for a hard money real estate loan.
So any time you come across an outstanding and lucrative flipping opportunity, rest assured you'll have a hard money lender in Brackenridge, ready to loan you the funds you'll need. Enter your info into the form or get in touch with us via phone and let's discuss your project.
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