Hard Money Loans in Colorado City
There is this outstanding opportunity to rehab and flip this nice old property or home in a very good part of town and it seems a lot like the deal you've been wanting for a long time. You've heard that veteran property flippers, like the husband and wife on HGTV's Flip or Flop, enjoy a remarkable average profit close to forty to fifty thousand dollars. And yes, they are helped in a major way as a result of their professional knowledge, auction expertise and knowledge of hard money loans. That said, you have also been brushing up your rehab and remodeling knowledge, have a general contractor ready to go and are positive that you can do a great job for this house.
But how can you find the needed financing for flipping? In the event you approach a customary lender, such as a bank for a loan, it in all likelihood will take a minimum of 30-60 days for the approval to be completed and your funds to be distributed. Since the majority of home owners prefer a fast closing, you might need to start searching for additional funding alternatives.
With banks bringing in harder loan requirements in recent years, it's become more challenging for a self-employed individual to obtain a home loan, especially if his credit circumstances are not flawless. So does that mean you have no option, but to give up your dream of getting into flipping? By no means, especially when Colorado City hard money loans can help you realize many amazing things in the real estate market.
If you decide to put in an application for a hard money home loan in Colorado City, you will get what's probably most important to real estate purchases across the country — a quick closing of approximately two weeks. In addition, the LTV value can reach up to 70% of the property's valuation, as evaluated by a credentialed appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, seem to be costlier than bank lending products. But when you understand these are not long-term mortgage loans, the rate of interest may be misleading. Short-term loans of a couple of months to a handful of years are best looked at in terms of cost of capital, very much like all other expenses in connection with a project. After you rehab and unload the property, recouping this expense is the same as recovering the expense for new kitchen appliances you placed into the property.
In addition, even an individual with low credit can easily qualify for a hard money mortgage. Rather than focusing solely on the person's credit score or net income, Colorado City hard money lenders, who may be a private company or an individual, approve a loan after evaluating the home value, ease of marketability, its location, and the possibility of recovering their capital in case of foreclosure. Adding to this, if the person can demonstrate past experience in comparable real estate projects, can place down cash for a down payment, and the cost of comparable houses in the vicinity works in his favor, he has a very good likelihood of being eligible for a hard money real estate loan.
Locating a hard money lender in Colorado City to cover expenses for your real estate project is not difficult, provided that the opportunity in front of you is promising and boasts a good potential for returns. Fill out the form on this page or call us and let's talk about the property you have in mind.
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