Hard Money Loans in Brownsville
Imagine you've run into this really great bargain on a fix and flip property located in an ideal location, and you're either a skilled real estate investor or a newbie who is looking to try his hand at flipping. Everyone knows that expert professional flippers, along the lines of Tarek and Christina El Moussa who do HGTV's reality flipping show, Fix or Flop, can make a typical profit margin of forty to fifty thousand dollars on their flips. It's fair to say their rehabbing experience, knowledge of hard money loans, familiarity with the housing market, and auction talents have played a big part in their successes. On the other hand, you are certain that your first class rehab and remodeling skills will assist you to do a quality job on this home — what's more, you already have lined up one of the premier building contractors in town to take care of this project.
But how exactly do real estate investors obtain financing? A standard lending institution, for instance a bank, takes at a minimum 1-2 months to authorize the financing and hand over the cash. With all the sellers looking for a fast closing, that does not seem like a great idea to you at all.
On top of this, banks have already been tightening up their lending standards in recent times, rendering it more hard for a person to obtain a traditional loan if their credit rating is not perfect or he does not have a consistent salaried profession. So will a shortage of funds keep you from pursuing your dream? By no means, because you can always use the Brownsville hard money loan approach to pay for your flipping project.
A hard money home loan in Brownsville can provide what is regarded as vital to most real estate transactions — a quick closing of just a 2-3 weeks and oftentimes even less. Furthermore, hard money lenders are capable of doing lending up to 70% LTV of the property's valuation, as calculated by a licensed third-party evaluator. Some individuals consider hard money real estate loans to be costlier than standard loans, because the interest rates for these loans generally start out at 10%. But if you consider these loans are not long-term home loans, the rate of interest may be misleading. When it comes to short-term loans of one or two years or even less, you should think about them similar to any other expense for your project. And when you've turned the home, recuperating this expense is comparable to recouping the expense for the kitchen and bath upgrades you did.
Moreover, even individuals with bad credit can easily be eligible for a hard money mortgage. Brownsville hard money lenders do not approve a loan solely based on the customer's credit score — instead they additionally assess the home, its valuation and location, and the property's ability to pay back the financing without the assistance of the person. Additional variables that impact a customer's approval for a hard money real estate loan can include how much he can put towards a down payment, his previous experience as a real estate investor, and price of comparable, fairly recently sold homes nearby.
So any time you run into a really good and profitable flipping opportunity, feel comfortable knowing you will have a hard money lender in Brownsville, in a position to lend you the funds you will need. Submit the form on this page or give us a call and let's discuss the property you have in mind.
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