Hard Money Loans in Breckenridge
Imagine you've run into this truly good deal on a fix and flip property located in an ideal neighborhood, and you happen to be either an experienced real estate investor or a first-timer who is looking to try his hand at flipping. Professional residential home flippers, such as the young couple on Flip or Flop, HGTV's reality flipping program, are able to bring in a profit of $40-$50k on the majority of projects. No need to explain that their past experiences rehabbing, knowledge of hard money loans, familiarity with the market, and auction talents have had an important role in their successes. On the other hand, you're convinced that your first class rehab and renovation knowledge will assist you to do a quality job for this project — additionally, you already have lined up one of the best building contractors in the area to take care of this job.
But money can be a different question entirely. In the event you opt for a normal loan from the bank, you will need to wait roughly 30-60 days before the financing is authorized and the funding is ready to go. Because most sellers favor a fast closing, it may be best to start seeking out some other financing alternatives.
Moreover, if you have a less-than-perfect credit rating or do not receive a regular income, it can be more difficult for you to qualify for a bank loan, considering the tougher loan guidelines banks have put in place recently. So do you have to stop trying and forego your desire to embark into the real estate market? Under no circumstances, especially while Breckenridge hard money loans will assist you to achieve great things in the real estate world.
If you opt for a hard money home loan in Breckenridge, you have access to what is possibly most essential to real estate purchases throughout the country — a fast closing of around a couple weeks. Further, loans can be made up to 70% loan-to-value of the as-is property value, as calculated by a licensed appraiser. Some people regard hard money real estate loans to be more pricey than regular financing, because the lending rates of such loans normally start off at 10%. But the term lengths for these loans are much shorter, which means the interest rate is far less significant. When it comes to short-term loans of a few years or even less, you should look at them just like you would other expenditures for your project. After you rehab and sell off the house, recuperating this expense is the same as recuperating the expense for new kitchen appliances you installed in the house.
Moreover, even individuals with poor credit will be able to qualify for a hard money mortgage. Breckenridge hard money lenders do not authorize a loan exclusively based on the borrower's credit score — rather they will look at the property, its valuation and location, and the property's ability to pay back the loan independent of the applicant. The amount that an individual can put down in advance towards the property, how much experience he has in real estate investments, and selling price of equivalent properties in the same area are various other details that go into ascertaining an applicant's eligibility for a hard money real estate loan.
If you happen to have stumbled on a really great fixer-upper with a significant potential for returns, you've also discovered a hard money lender in Breckenridge that's prepared to provide financing for your fix and flip venture. Submit the contact form or call us and let's discuss the property or properties you have in mind.
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