Hard Money Loans in Centreville

An incredible buy on a fix and flip opportunity located in a good subdivision shows up out of the blue — sounds too good to be true. You may have heard that competent property flippers, much like the husband and wife on HGTV's Flip or Flop, turn a remarkable average return near forty to fifty thousand dollars. It's fair to say their rehabbing experience, knowledge of hard money loans, familiarity with the housing market, and auction skills have played an important role in their successes. That said, you have recently been brushing up your rehab and remodeling knowledge, have a building contractor arranged and are confident that you're capable of doing a stellar job on this home.

But where precisely can real estate investors get capital? A typical lender, like for example a bank, takes at the very least 1-2 months to authorize the financing and deliver the capital. Due to the fact all the sellers are wanting to find a fast closing, that doesn't appear to be a good option to you whatsoever.

Moreover, should you have a sub-optimal credit rating or do not receive a regular source of income, it usually is tougher to qualify for a bank loan, considering the tougher loan guidelines banks have issued in recent times. So will a lack of funding stop you from sticking to your aspirations? By no means, on the grounds that you could always go the hard money loan route to fund your home renovating project.

A hard money home loan in gives you what is viewed as imperative to many real estate sales — a fast closing of just a few weeks and sometimes even less. In addition, the LTV value can reach up to 70% of the place's valuation, as determined by a credentialed appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, appear to be more costly than bank lending options. But if you understand these loans are not long-term loans, the rate of interest may be misleading. The price tag on such short-term loans ought to be viewed on par with any other financial outlay that you will encounter in the course of the project. Once you've sold the house and have made a successful gain, you'll be able to recoup this expense from the house — very much like recouping the money spent on the brand-new appliances for the kitchen that you have installed.

Furthermore, even individuals with low credit will be able to qualify for a hard money mortgage. hard money lenders don't take on a loan strictly based on the customer's credit score — instead they additionally assess the property, its valuation and location, and the home's capacity to pay back the financing on its own. Adding to that, if the borrower can demonstrate past experience in equivalent real estate projects, can put down cash for the down payment, and the price of comparable homes in the vicinity works to his benefit, he will have a very good chance of qualifying to obtain a hard money real estate loan.

So if you have found an excellent real estate opportunity with a significant prospect of returns, you've also discovered a hard money lender in who's willing to provide financing for your fix and flip project. Fill out the form or call us and let's talk about your property or properties.

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Investment property loans only please, no primary residences at this time.