Hard Money Loans in College Park
A remarkable buy on a fix and flip opportunity located in a very good neighborhood shows up out of the blue — seems so good that it is hard to believe. Everyone knows that expert professional flippers, along the lines of Tarek and Christina El Moussa who do HGTV's reality home flipping series, Fix or Flop, can generate a typical profit margin of $40,000 to $50,000 in their rehab business. And without a doubt, they are helped in a big way as a result of their professional know-how, auction abilities and familiarity with hard money loans. Nevertheless, you are assured that your superb rehab and renovation knowledge will enable you to do a great job on this project — what's more, you already have lined up one of the best contractors in the area to work on this project.
But how do you obtain the needed financing for flipping? If you apply for a conventional loan via a bank, you will end up waiting around roughly 30-60 days before the money is authorized and your funding is ready. Because most home owners would prefer a fast closing, you might have to start searching for additional funding alternatives.
With banks adding more challenging loan guidelines in the last few years, it's become more challenging for a self-employed individual to obtain a home loan, particularly if his credit circumstances are not perfect. So does this leave you with no option, but to abandon your aspiration to venture into home flipping? Certainly not, given that you always have the College Park hard money loan option.
A hard money home loan in College Park gives you what is perhaps most desired by real estate investors — a fast closing time of as few as 2 weeks. Furthermore, hard money lenders will often consent to loans up to 70% LTV of the home value, as determined by a professional third-party evaluator. A number of people consider hard money real estate loans to be costlier than standard loans, since the lending rates for such loans usually start at 10%. But usually, the interest rate isn't as pertinent for these loans, because they are not long-term loans. Short-term loans of several months to a few years are best understood as cost of capital, the same as any other financial outlay associated with a project. And as soon as you have finally flipped the home, recovering this expense is the exact same as recuperating the expense for the kitchen and bath updates you performed.
Aside from that, hard money mortgages are easy qualifying, even if you have got a weak credit score. College Park hard money lenders don't approve a loan exclusively on the basis of the borrower's credit score — rather they will examine the property or home, its value and location, and the home's ability to pay back the loan on its own. Adding to this, if the individual have proven experience in similar real estate endeavors, can put down cash towards the down payment, and the value of similar houses in the area works to his benefit, he stands a very good chance of qualifying for a hard money real estate loan.
If you happen to have stumbled upon a wonderful real estate opportunity with a huge chance of returns, you've also stumbled upon a hard money lender in College Park who's ready to provide funding for your fix and flip project. Enter your info into the contact form on this page or give us a call to discuss the property or properties you have in mind.
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