Hard Money Loans in Braselton
Suppose you've come across this excellent bargain for a fix and flip property located in a great location, and you're either an experienced real estate investor or a newbie who really wants to try out flipping houses. You've probably heard that competent house flippers, like the married couple on HGTV's Flip or Flop, have a remarkable average profit of around forty to fifty thousand dollars. Without question, their past experiences rehabbing, knowledge of hard money loans, expertise in their housing market, and auction skills have been large factors to their results. Still, your rehab and renovation skills aren't that bad either — besides, you have already located an ideal contractor to tackle this job.
But how can you get the necessary financing for flipping? A traditional lender, say for example a bank, takes at least 1-2 months to consent to the loan and provide the capital. Since most sellers give preference to a fast closing, you might need to begin searching for other financing options.
With banks establishing more challenging loan criteria in the past several years, it has become more difficult for a self-employed individual to find a mortgage loan, particularly if his credit situation is not perfect. So does that mean you have no option, but to give up your ambition to venture into the fix and flip business? By no means, considering that you can always go the Braselton hard money loan route to finance your home renovating project.
If you should obtain a hard money home loan in Braselton, you will get what is perhaps most important to real estate offers across the country — a very fast closing of around two weeks. Plus, the LTV value can range up to 70% of the property value, as determined by a certified appraiser. With the rates starting out around 10%, hard money real estate loans may appear, at first, to be more expensive in comparison with traditional bank financing. But if you understand these loans are not long-term loans, the rate of interest tends to be misleading. The price tag on such short-term loans ought to be considered on par with any other financial outlay that you might encounter during the project. Once you have resold the property or home and have made a successful return, you'll be able to recover this expense from the property or home — much like recouping the money spent on the brand-new kitchen appliances that you have put in.
In addition, even someone with bad credit will be able to qualify for a hard money mortgage. Braselton hard money lenders do not approve a loan solely based on the borrower's credit score — rather they also evaluate the property or home, where it is located and what it is worth, and the property's ability to pay back the loan independent of the borrower. Several other factors that have an impact on a person's acceptance for a hard money real estate loan can include what amount of money he is able to put towards a down payment, his prior experience as a real estate investor, and price range of similar, fairly recently sold properties in the neighborhood.
So in case you have found a really great real estate opportunity with a significant prospect of returns, you've also stumbled upon a hard money lender in Braselton who's happy to provide financing for your fix and flip projects. Enter your info into the form on this page or give us a call to talk about your project.
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