Hard Money Loans in Brownfield
There is this phenomenal opportunity to rehab and flip this wonderful outdated house in a fantastic area and it seems a lot like the one you've been anticipating for quite a while. You may have heard that professional home flippers, similar to the couple on HGTV's Flip or Flop, enjoy a remarkable average profit margin near forty to fifty thousand dollars. No need to explain that their rehabbing experience, knowledge of hard money loans, familiarity with the housing market, and auction talents have been major factors to their successes. That said, you've recently been brushing up your rehab and renovation skills, have got a general contractor ready for the project and are positive that you will be able to do a great job on this house.
But capital can be a different issue altogether. Should you meet with a common lender, such as a bank for a mortgage loan, it more than likely will take no less than thirty to sixty days for the approval to come through and the money to be given out. Since most home owners would prefer a fast closing, you may want to start seeking out some other funding options.
On top of this, banks have been tightening up their lending standards in recent years, which makes it tough for people to obtain a typical home loan if their credit situation is not flawless or he doesn't have a regular salaried profession. So does this mean you have no option, but to abandon your dream of getting into flipping? Never, because you can always go the Brownfield hard money loan route to finance your home flipping project.
A hard money home loan in Brownfield provides you with what's perhaps most essential to real estate investors — a fast closing in as few as 14 days. Besides that, hard money lenders are capable of doing lending up to 70% LTV of the property or home's valuation, as identified by a certified third-party evaluator. On the surface, hard money real estate loans, with starting lending rates of 10%, could be seen as more expensive than bank lending products. But usually, the rate of interest is not as pertinent for these loans, given that they will never be long-term loans. Short-term loans of a couple of months to a few years are best understood in terms of cost of capital, similar to all other expenses related to a project. And as soon as you have finally flipped the property or home, recovering this expense is comparable to recuperating the expense for all the kitchen and bath upgrades you did.
Apart from this, hard money mortgages are not difficult to qualify for, even when you posses a low credit rating. Instead of focusing exclusively on the person's credit score or wages, Brownfield hard money lenders, who may be a privately owned company or an individual person, approve a loan after analyzing the property value, its marketability, its location, and the possibility of getting back their capital should they have to foreclose the loan. Adding to that, if the applicant can demonstrate past experience in similar real estate ventures, can place down money towards the down payment, and the value of comparable homes in the neighborhood works in his favor, he stands a very good shot of being eligible to obtain a hard money real estate loan.
So if you have stumbled on a wonderful fixer-upper with a huge probability of returns, you've also stumbled upon a hard money lender in Brownfield that is ready to provide financing for your flipping project. Fill out the contact form on this page or give us a call and let's discuss your property.
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