Hard Money Loans in Bryan
You discovered this outstanding possibility for fixing and flipping this nice old property in a good location and it seems a lot like the one you've been eagerly waiting on for a long time. You may have heard that competent home flippers, like the husband and wife on HGTV's Flip or Flop, turn an impressive average profit near forty to fifty thousand dollars. Of course, you also understand that their results can be attributed to the simple fact that they are professionals, are knowledgeable in hard money loans, they know market trends quite well and in addition, they know how to work a public auction for getting a reasonable price. Still, your rehab and renovation knowledge isn't that bad either — besides, you have already found the right general contractor to tackle the home.
But money is often a separate issue altogether. A typical lending institution, say for example a bank, takes no less than 1-2 months to approve the financing and provide the monies. Thus if you are looking for a fast closing, you must understand or know that this will set you back by a few weeks, causing you to miss out on the house.
With banks introducing tougher loan standards in the last few years, it has become much harder for a self-employed individual to obtain a mortgage loan, particularly if his credit rating is not perfect. So does that mean you have no option, but to drop your ambition of venturing into home renovating? Most certainly not, because you also have the Bryan hard money loan alternative.
A hard money home loan in Bryan gives you what is perhaps most crucial to real estate investors — a quick closing time of as few as two weeks. In addition, the LTV value can range up to 70% of the home's valuation, as evaluated by a competent appraiser. A number of people believe hard money real estate loans to be higher priced than regular loans, since the interest rates for these loans often start out at 10%. But in reality, the interest rate is not as relevant for these loans, since they aren't long-term financing. Short-term loans of a couple of months to a handful of years are best understood in terms of cost of capital, the same as every other financial outlay in connection with a project. And once you have sold the property or home, recovering this expense is identical to recouping the expense for all the bathroom improvements you did.
Aside from that, hard money mortgages are not hard to qualify for, even in the event you posses a bad credit score. Bryan hard money lenders don't take on a loan strictly based on the customer's credit score — instead they additionally examine the property, its location and value, and the property's ability to pay back the financing by itself. The amount that a borrower can put down beforehand for the property, how much experience he has in real estate investments, and price range of comparable properties in the same neighborhood are additional factors that go into establishing a person's qualification for a hard money real estate loan.
So in case you have stumbled on a wonderful home to flip with a high chance of returns, you have also found yourself a hard money lender in Bryan who is willing to finance your fix and flip projects. Complete the contact form on this page or call us to talk about the property or properties you have in mind.
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