Hard Money Loans in Broken Arrow
There is this phenomenal opportunity to fix and flip this wonderful out of date home in a very good part of town and it seems like the deal you've been expecting for quite some time. Many people know that knowledgeable professional flippers, such as Tarek and Christina El Moussa from HGTV's reality flipping series, Fix or Flop, can readily earn a typical profit margin of $40,000 to $50,000 on their flips. And yes, they are helped in a major way as a result of their professional knowledge, auction abilities and knowledge of hard money loans. With that being said, you have recently been developing your rehab and remodeling skills, have a general contractor ready for the project and are positive that you will be able to do an impressive job for this home.
But funding is a different issue altogether. For those who go after a regular loan via a bank, you will need to wait around roughly one to two months before the money is authorized and the money is accessible. Since most sellers wish to have a fast closing, it may be advisable to start seeking out some other funding options.
Furthermore, should you have a less-than-perfect credit situation or don't have a regular source of income, it is usually harder for you to qualify for bank financing, considering the more stringent loan guidelines banks have put in place in recent times. So will a shortage of funding prevent you from sticking with your aspirations? Certainly not, seeing as you always have the Broken Arrow hard money loan alternative.
A hard money home loan in Broken Arrow gives you what's possibly most desired by real estate investors — a quick closing time period of as little as a few weeks. In addition, the LTV value can range up to 70% of the property value, as evaluated by a certified appraiser. With rates starting off near 10%, hard money real estate loans might appear, at first glance, to be more costly compared to traditional bank loans. But the lengths of these loans are relatively shorter, which makes the interest rate less significant. The price tag on such short-term loans should be considered much like every other expense that you might encounter in the course of the project. Once you have sold the property or home and have made a successful gain, you'll be able to reclaim this expense from the home — just like recouping the cost of brand-new appliances for the kitchen that you've installed.
What's more, it isn't difficult to obtain a hard money mortgage, regardless if your credit situation is not that impressive. Broken Arrow hard money lenders don't take on a loan solely based on the borrower's credit score — rather they also analyze the property or home, where it is located and what it is worth, and the property's capacity to pay back the financing on its own. The total amount that an individual can put upfront towards the property or home, his real estate experience, and selling price of comparative properties in the same neighborhood are various other factors that go into ascertaining an applicant's qualification for a hard money real estate loan.
So if you have stumbled upon a really great fixer-upper with a high potential for returns, you've also stumbled upon a hard money lender in Broken Arrow who's willing to finance your rehab project. Enter your info into the contact form or give us a call to talk about your property or properties.
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