Hard Money Loans in Brownwood
Imagine you've run into this really great bargain on a fix and flip property in a terrific location, and you're either a skilled real estate investor or a first-timer who wants to try his hand at flipping. Professional property flippers, like the young married couple on Flip or Flop, HGTV's reality flipping series, are capable of hauling in a profit of $40-$50k on average. Without question, their rehabbing experience, knowledge of hard money loans, familiarity with the housing market, and auction talents have had a big role in their successes. Having said that, you have likewise been cultivating your rehab and remodeling skills, have a general contractor arranged and are positive that you will be able to do a stellar job on this property.
But how can you find the needed funding for home flipping? When you get in touch with a customary lending institution, like a bank for funding, it's very likely going to take at least thirty to sixty days for your approval to be completed and the money to be furnished. With the home owners wanting a fast closing, that does not seem like a wise idea to you at all.
With banks establishing tougher loan standards in the past several years, it is now tougher for a self-employed individual to find a home loan, particularly if his credit circumstances are not perfect. So does that mean you are without an option, but to abandon your dream of venturing into home flipping? By no means, because you can always go the Brownwood hard money loan route to finance your home flipping project.
A hard money home loan in Brownwood provides what's deemed crucial to most real estate deals — a very fast closing of only a few weeks and oftentimes even less. Plus, the LTV value can reach up to 70% of the property value, as determined by a competent appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, seem to be more pricey than bank loans. But usually, the interest rate isn't as pertinent for these loans, given that they aren't long-term loans. Short-term loans of a couple of months to a handful of years are best understood in terms of cost of capital, much like every other financial outlay associated with a project. Right after you renovate and unload the home, recovering this expense is no different than recuperating the cost of the home appliances you placed into the place.
What's more, it isn't difficult to be eligible for a hard money mortgage, even in the event your credit situation is not that great. Instead of focusing strictly on the applicant's credit score or source of income, Brownwood hard money lenders, who may be a private company or an individual, say yes to a loan after analyzing the property value, its marketability, where it is located, and the possibility of getting back their capital should they have to foreclose the loan. Several other criteria that affect a borrower's acceptance for a hard money real estate loan include how much he is able to put into a down payment, his past experience being a real estate investor, and selling price of comparable, just recently sold properties in the neighborhood.
So any time you come across a good and profitable flipping opportunity, be assured you'll have a hard money lender in Brownwood, able to lend you the cash that you need. Enter your info into the contact form or get in touch with us via phone and let's discuss the property you have in mind.
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