Hard Money Loans in Cameron
An outstanding bargain on a fix and flip property in a nice area of the city shows up out of the blue — sounds so good that it's hard to believe. Expert residential home flippers, similar to the young married couple on Flip or Flop, HGTV's reality flipping show, are able to earn a profit of $40-$50k for the majority of homes. Of course, you also recognize that their successes are attributed to the fact that they are professionals, are proficient in hard money loans, they know the market really well and they also are good at working an auction to buy their properties at a reasonable price. However, you're certain that your superb rehab and renovation talents will help you do a great job on the property — what's more, you already have lined up one of the best building contractors in the area to handle this project.
But funding is usually a separate issue entirely. If you meet with a common lending institution, much like a bank for a loan, it more than likely will take no less than 4-8 weeks for the approval to come through and your money to be accessible. So if you are looking for a fast closing, you need to recognize that this will set you back by a couple weeks, causing you to miss out on the opportunity.
Furthermore, in case you have a sub-optimal credit score or don't have a consistent income, it can be harder for you to qualify for a bank loan, seeing the stricter loan guidelines banks have issued lately. So do you have to stop trying and abandon your ambition to embark into fix and flips? By no means, because you can always go the Cameron hard money loan route to pay for your flipping project.
A hard money home loan in Cameron gives you what is deemed imperative to most real estate sales — a quick closing of only a 2-3 weeks and at many times less. Aside from that, financing can be made up to 70% loan-to-value of the "as is" value, as deemed by a qualified appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, seem to be higher in price than bank financing. But usually, the rate of interest is not as pertinent for these loans, because they aren't long-term loans. Short-term loans of a couple of months to a handful of years are best understood as cost of capital, much like all other expenditures in connection with a project. And as soon as you have flipped the house, recovering this expense is comparable to recouping the expense for all the kitchen and bath improvements you did.
Also, it is easy to be eligible for a hard money mortgage, regardless of whether your credit score is not that great. Instead of focusing strictly on the borrower's credit score or income, Cameron hard money lenders, who may be a privately owned company or an individual person, authorize a loan after evaluating the property value, ease of marketability, its location, and the odds of recovering their capital in the event of foreclosure. The amount that an individual can put upfront towards the house, his real estate experience, and selling price of comparable properties in the neighborhood are other factors that go into analyzing an applicant's eligibility for a hard money real estate loan.
So in case you have stumbled upon a wonderful fixer-upper with a huge probability of returns, you have also discovered a hard money lender in Cameron that's ready to fund your fix and flip project. Submit the form or get in touch with us via phone to discuss the property or properties you have in mind.
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