Hard Money Loans in Cedar Park
A fabulous buy on a fix and flip property in a very good subdivision shows up out of the blue — seems too good to be true. You've probably heard that professional home flippers, such as the married couple on HGTV's Flip or Flop, enjoy an impressive average profit margin near forty to fifty thousand dollars. Of course, you also understand that their great results can be attributed to the fact that they are industry experts, are proficient in hard money loans, they know market trends quite well and in addition, they know how to work an auction to purchase their homes at a reasonable price. However, you're convinced that your impressive rehab and remodeling abilities will help you do a superb job for this home — what's more, you already have arranged to have one of the most sought after building contractors in town to work on the project.
But where can real estate investors get financing? In the event you meet with a common lender, such as a bank for financing, it's very likely going to take, as a minimum, 4-8 weeks for your approval to come through and your funds to be sent out. With all the home owners seeking a fast closing, that does not appear like a good idea to you whatsoever.
On top of this, banks have been tightening their lending criteria as of late, rendering it more hard for a person to receive a typical loan if their credit circumstances are not flawless or he does not have a consistent salaried job. So does this leave you with no option, but to abandon your dream of venturing into home renovating? Certainly not, given that you also have the Cedar Park hard money loan option.
A hard money home loan in Cedar Park boasts what's perhaps most sought after by real estate investors — a very fast closing time period of as few as 2 weeks. Aside from that, loan amounts are made up to 70% loan-to-value of the "as is" home's valuation, as deemed by a professional appraiser. A number of people regard hard money real estate loans to be higher in price than customary loans, considering interest rates for such loans commonly start off at 10%. But usually, the interest rate is not as pertinent for these loans, given that they are not long-term loans. When it comes to short-term loans of a few years or less, you should look at them the same as you would for every other expenditure for your project. Right after you renovate and sell off the property, recuperating this expense is the same as recouping the expense for new kitchen appliances you installed in the property.
Aside from that, hard money mortgages are not hard to qualify for, even when you have got a low credit score. Cedar Park hard money lenders don't take on a loan exclusively according to the applicant's credit score — rather they will examine the home, its valuation and location, and the property's ability to pay back the financing independent of the borrower. Several other criteria that have an impact on an individual's eligibility for a hard money real estate loan include the amount he is able to put towards a down payment, his prior experience being a real estate investor, and selling price of comparable, fairly recently sold residences in the neighborhood.
Locating a hard money lender in Cedar Park to fund your fix and flip endeavor is not difficult, provided that the opportunity that lies before you is promising and has the right prospect for returns. Fill out the form on this page or give us a call to discuss the property or properties you have in mind.
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