Hard Money Loans in Buena Vista
A fabulous bargain on a fix and flip opportunity located in a very good neighborhood shows up out of the blue — sounds too good to be true. Everybody knows that knowledgeable professional flippers, such as Tarek and Christina El Moussa who star in HGTV's reality home flipping program, Fix or Flop, are able to turn an average profit margin of forty to fifty thousand dollars on their home projects. It goes without saying their past experiences rehabbing, knowledge of hard money loans, familiarity with the market, and auction talents have played a significant part in their success. Still, your rehab and remodeling skills aren't bad either — besides, you've already located a good general contractor to start this home.
But how exactly can real estate investors find capital? For those who get in touch with a regular lender, like a bank for a mortgage loan, it is more than likely going to take, at a minimum, thirty to sixty days for the approval to come through and the money to be accessible. With all the home owners looking for a fast closing, that doesn't appear like a great idea to you in the slightest.
With banks introducing more challenging loan criteria in recent times, it is tougher for a self-employed individual to get a mortgage loan, particularly if his credit rating is not optimal. So will a lack of financing prevent you from pursuing your aspirations? Certainly not, considering that you could always go the Buena Vista hard money loan route to pay for your home flipping project.
A hard money home loan in Buena Vista provides what is possibly most sought after by real estate investors — a quick closing time period of as little as 2 weeks. What's more, the LTV value can reach up to 70% of the home's valuation, as evaluated by a competent appraiser. At first glance, hard money real estate loans, with starting interest rates of 10%, could be seen as costlier than bank financing. But in reality, the rate of interest is not as useful a measure for these loans, given that they will never be long-term loans. As it pertains to short-term loans of 1 or 2 years or even less, you should look at them the same as you would for every other expenditure for your project. And when you've turned the house, recouping this expense is identical to recouping the expense for all the bathroom improvements you performed.
Moreover, even a person with weak credit can easily be eligible for a hard money mortgage. Rather than focusing solely on the person's credit score or source of income, Buena Vista hard money lenders, who may be a private company or an individual, authorize a loan as a result of analyzing the property value, its salability, its location, and the likelihood of recovering their money in the event of foreclosure. How much of their own money an individual can put upfront for the home, how much practical experience he has in real estate investing, and selling price of comparative properties in the area are various other details that go into determining an applicant's qualification for a hard money real estate loan.
So any time you come across a good and profitable flipping opportunity, be assured you will have a hard money lender in Buena Vista, equipped to lend you the capital you need. Fill out the contact form on this page or give us a call and let's talk about your property.
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