Hard Money Loans in Clanton

An incredible buy on a fix and flip opportunity located in an excellent neighborhood suddenly turns up — sounds too good to be true. You've heard that veteran house flippers, such as the married couple on HGTV's Flip or Flop, turn a remarkable average profit of around forty to fifty thousand dollars. It's fair to say their past experiences rehabbing, knowledge of hard money loans, expertise in their market, and auction talents have played a big role in their success. Still, your rehab and renovation knowledge isn't that bad either — aside from that, you have already identified the right licensed contractor to start this project.

But where precisely do real estate investors get funding? A standard lender, for instance a bank, takes no less than one to two months to approve the mortgage and hand over the money. Due to the fact all the home owners are wanting to find a fast closing, that does not seem like a great idea to you at all.

With banks adding more challenging loan criteria in the last few years, it's become tougher for a self-employed person to find a mortgage loan, especially when his credit circumstances are not flawless. So must you give up and forego your desire to venture into real estate? By no means, because you can always go the hard money loan route to pay for your rehab project.

If you obtain a hard money home loan in , you have access to what's perhaps most essential to real estate offers across the country — a quick closing of about a couple weeks. Further, loans can be done for up to 70% loan-to-value of the as-is property's valuation, as determined by a qualified appraiser. A number of people believe hard money real estate loans to be more expensive than standard financing, because the lending rates for such loans generally start at 10%. But if you appreciate that these are not long-term home loans, the rate of interest may be misleading. The price tag on such short-term loans ought to be evaluated much like any other expenditure that you would have to meet for the project. Once you've resold the house and have made a good financial gain, you can get back this expense from the property — very much like recovering the money spent on the brand-new appliances for the kitchen that you put in.

Aside from that, hard money mortgages are not difficult to qualify for, even if you have less-than-perfect credit. Instead of focusing strictly on the borrower's credit score or wages, hard money lenders, who may be a private company or an individual person, approve a loan after assessing the property value, its marketability, where it is located, and the possibility of recouping their money in the event of foreclosure. Adding to this, if the borrower have proven experience in similar real estate ventures, can put down cash for a down payment, and the cost of similar homes in the area works to his benefit, he has got a very good chance of being approved to obtain a hard money real estate loan.

So should you come across a really good and profitable investment opportunity, rest assured you'll have a hard money lender in , prepared to loan you the funds you will need. Enter your info into the contact 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.