Hard Money Loans in Brentwood
An outstanding buy on a fix and flip property located in a nice area of the city shows up out of the blue — sounds too good to be true. Expert property flippers, much like the young married couple on Flip or Flop, HGTV's reality flipping program, are capable of generating a profit of forty to fifty grand for most homes. No need to explain that their rehabbing experience, understanding of hard money loans, familiarity with the market, and auction skills have had a big part in their results. Nonetheless, your rehab and renovation knowledge isn't that bad either — in any case, you have already found a suitable contractor to start this home.
But where do you obtain the necessary funding for home flipping? A standard lending institution, say for example a bank, takes at least one to two months to authorize the loan and deliver the capital. So if you're anticipating a fast closing, it's important for you to understand or know that this will cost you a few weeks, causing you to miss out on the house.
To add to it, banks have already been tightening their lending criteria in recent times, which makes it challenging for people to get a regular home loan if their credit rating is not flawless or he is lacking a consistent salaried job. So must you admit defeat and abandon your aspiration to venture off into real estate? Certainly not, given that you also have the Brentwood hard money loan option.
A hard money home loan in Brentwood offers you what's deemed imperative to most real estate sales — a fast closing of just a couple of weeks and more often than not less. In addition, the LTV value can range up to 70% of the property's valuation, as evaluated by a credentialed appraiser. A number of people regard hard money real estate loans to be more pricey than customary loans, since the interest rates for such loans commonly start at 10%. But the time frames of these loans tend to be much shorter, which makes the rate much less important. As it pertains to short-term loans of one or two years or less, you should consider them the same as you might for any other expenditure for your project. After you renovate and unload the home, recouping this expense is no different than recuperating the money you spent for new kitchen appliances you installed in the house.
Moreover, even an individual with poor credit can still qualify for a hard money mortgage. The person's credit score will not be the single determining factor for Brentwood hard money lenders — additionally, they look at the property, its market valuation, its location, and its capacity to return their financial commitment if things should not work out as intended. The amount that a person can put upfront for the home, how much practical experience he has in real estate investing, and price range of comparable homes in the same neighborhood are various other factors that go into ascertaining a person's suitability for a hard money real estate loan.
So should you come across an outstanding and worthwhile flipping opportunity, be assured you'll have a hard money lender in Brentwood, equipped to loan you the money you will need. Complete the contact form or call us to discuss your property or properties.
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