Hard Money Loans in Cactus
An outstanding buy on a fix and flip opportunity located in an excellent neighborhood shows up out of the blue — sounds so good that it is difficult to believe. Most folks know that expert professional flippers, along the lines of Tarek and Christina El Moussa who star in HGTV's reality flipping show, Fix or Flop, are able to earn an average profit of forty to fifty thousand dollars on their home projects. And indeed, they are helped in a major way by their professional know-how, auction skills and understanding of hard money loans. Nonetheless, your rehab and renovation skills aren't that bad either — in any case, you have already found an ideal licensed contractor to tackle this home.
But funding is usually a different issue altogether. A traditional lending institution, for instance a bank, takes a minimum of 1 to 2 months to authorize the financing and provide the money. Given that sellers give preference to a fast closing, you may want to begin searching for some other funding options.
Moreover, should you have a sub-optimal credit situation or don't receive a routine income source, it may be more difficult to be eligible for a a bank loan, seeing the tougher loan guidelines banks have put in place in recent times. So does that mean you have no option, but to drop your ambition to venture into home flipping? By no means, due to the fact you can always use the Cactus hard money loan approach to pay for your rehab project.
A hard money home loan in Cactus can provide what is viewed as crucial to most real estate deals — a fast closing of only a 2-3 weeks and oftentimes even less. What's more, the LTV value can range up to 70% of the home value, as evaluated by a competent appraiser. On the surface, hard money real estate loans, with starting lending rates of 10%, appear to be costlier than bank loans. But the term lengths for these loans are relatively shorter, which makes the interest rate far less important. The price tag on such short-term loans should be evaluated on par with every other expense that you would have to meet for the project. When you have turned the house and have made a good financial gain, you're able to recoup this expense from the property — just like recouping the cost of brand-new home appliances that you've installed.
Aside from that, hard money mortgages are easy qualifying, whether or not you have got bad credit. As an alternative for focusing strictly on the person's credit score or wages, Cactus hard money lenders, who can be a private company or an individual, say yes to a loan after examining the home value, how easy it will be to market, its location, and the probability of getting back their money in the event of foreclosure. How much money a borrower can put upfront for the home, how much experience he has in real estate investments, and selling price of comparative homes in the same vicinity are additional factors that go into establishing an applicant's eligibility for a hard money real estate loan.
So should you come across an outstanding and lucrative flipping opportunity, feel comfortable knowing you will have a hard money lender in Cactus, in a position to loan you the capital you'll need. Complete the contact form or call us to talk about the project you have in mind.
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