Hard Money Loans in Childress
Suppose you've come across this truly good bargain on a fix and flip property located in a great neighborhood, and you are either an experienced real estate investor or a newbie who wants to try his hand at flipping. You've heard that professional property flippers, similar to the couple on HGTV's Flip or Flop, enjoy a remarkable average return close to $40,000 – $50,000. Without question, their rehabbing experience, understanding of hard money loans, familiarity with the market, and auction talents have played an important role in their success. Nevertheless, you're assured that your impressive rehab and renovation skills will help you do a superb job for this home — additionally, you already have arranged to have one of the most suggested general contractors in the business to work on the job.
But where precisely can real estate investors find funding? A standard lending institution, like for example a bank, takes at least one to two months to consent to the loan and deliver the money. With the sellers looking for a fast closing, that doesn't appear like a great idea to you whatsoever.
With banks adding more challenging loan guidelines in the last few years, it has become tougher for a self-employed person to find a home loan, especially if his credit score is not optimal. So does that leave you with no other option, but to abandon your dream to venture into flipping? Absolutely not, seeing as you also have the Childress hard money loan option.
A hard money home loan in Childress offers what's viewed as crucial to many real estate sales — a very fast closing of just a 2-3 weeks and at times even less. In addition, the LTV value can range up to 70% of the property's valuation, as estimated by a certified appraiser. At first, hard money real estate loans, with starting lending rates of 10%, seem to be costlier than bank financing. But usually, the interest rate isn't as useful a measure for these loans, simply because they aren't long-term loans. As it pertains to short-term loans of a few years or even less, you should think of them similar to every other expense for your project. When you have resold the property and have made a positive gain, you can reclaim this expense from the property — just like recovering the money spent on the brand-new appliances for the kitchen that you have installed.
What's more, it's easy to be eligible for a hard money mortgage, even in the event your credit rating is not that great. The applicant's credit score will not be the exclusive deciding factor for Childress hard money lenders — additionally, they look at the piece of real estate, how much it is worth, its location, and its capability to bring back their investment if things do not go as planned. The amount that an individual can put down in advance for the property, his real estate experience, and selling price of comparative properties in the same vicinity are additional factors that go into analyzing an individual's suitability for a hard money real estate loan.
If you happen to have stumbled on a wonderful home to flip with a high prospect of returns, you have also discovered a hard money lender in Childress that is happy to provide financing for your fix and flip project. Submit the contact form or give us a call to talk about the property you have in mind.
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