Hard Money Loans in Colleyville
There's this outstanding opportunity to renovate and flip this nice out of date home in a fantastic location and it looks a lot like the deal you've been eagerly waiting on for quite some time. You've probably heard that competent house flippers, much like the couple on HGTV's Flip or Flop, have an impressive average profit of around forty to fifty thousand dollars. And without a doubt, they are helped in a major way as a result of their professional know-how, auction expertise and understanding of hard money loans. With that being said, you have recently been developing your rehab and remodeling skills, have a very good contractor ready for the project and are certain that you're capable of doing a great job for this house.
But where can you obtain the needed capital for home flipping? In the event you apply for a regular loan via a bank, you will end up waiting around somewhere around 4-8 weeks up until the mortgage loan is authorized and the money is readily available. Given that sellers would rather have a fast closing, it may be advisable to start searching for some other funding options.
As well as this, in case you have a less-than-perfect credit score or don't have a routine source of income, it is normally more challenging to qualify for bank financing, considering the stricter loan criteria banks have issued recently. So does that mean you are without an option, but to drop your dream to venture into the fix and flip business? Under no circumstances, especially while Colleyville hard money loans enable you to realize many amazing things in real estate.
A hard money home loan in Colleyville gives you what's probably most desired by real estate investors — a fast closing time of as few as two weeks. Furthermore, hard money lenders will often consent to funding up to 70% LTV of the property's valuation, as calculated by a credentialed third-party appraiser. Some people believe hard money real estate loans to be costlier than regular loans, because the interest rates for such loans often start out at 10%. But in reality, the lending rate isn't as useful a measure for these loans, since they are not long-term financing. Short-term loans of a couple of months to a handful of years are best approached as cost of capital, the same as all other expenditures associated with a project. And as soon as you have finally flipped the home, recuperating this expense is the exact same as recouping the expense for all the bathroom or other improvements you performed.
Also, it isn't difficult to obtain a hard money mortgage, even in the event your credit rating is not that extraordinary. The person's credit score is not the primary deciding factor for Colleyville hard money lenders — they also examine the property, its market valuation, where it is located, and its potential to earn back their financial commitment if everything does not work out as intended. Additional criteria that affect a customer's approval for a hard money real estate loan can include what amount of money he can put into a down payment, his former experience being a real estate investor, and selling price of similar, just recently sold properties in the vicinity.
So any time you run into an outstanding and worthwhile flipping opportunity, feel comfortable knowing you'll have a hard money lender in Colleyville, ready to lend you the capital you'll need. Complete the contact form or call us to discuss the project you have in mind.
A loan specialist will be in touch shortly