Hard Money Loans in Copperas Cove
Imagine you've run across this excellent deal for a fix and flip property in an ideal neighborhood, and you are either a skilled real estate investor or a newbie who hopes to try his hand at flipping. You may have heard that veteran house flippers, similar to the married couple on HGTV's Flip or Flop, have a remarkable average profit of around forty to fifty thousand dollars. Undoubtedly, you also know that their success are due to the fact that they're industry experts, are well versed in hard money loans, they understand the market really well and in addition, they are good at working a public auction for getting an appropriate deal. Still, your rehab and remodeling skills aren't bad either — in any case, you have already located a good building contractor to tackle the job.
But how exactly do real estate investors get capital? A traditional lending institution, like for example a bank, takes at a minimum one to two months to authorize the loan and release the money. Considering that the sellers are wanting to find a fast closing, that does not appear like a good idea to you whatsoever.
With banks adding more challenging loan guidelines in the past several years, it's become more challenging for a self-employed person to get a home loan, especially when his credit situation is not optimal. So will a shortage of funds prevent you from pursuing your ambitions? Certainly not, because you always have the Copperas Cove hard money loan alternative.
A hard money home loan in Copperas Cove offers what is considered vital to most real estate transactions — a very fast closing of only a couple of weeks and sometimes less. Further, loans can be made up to 70% loan-to-value of the as-is house value, as determined by a qualified appraiser. Some people regard hard money real estate loans to be more costly than ordinary loans, considering lending rates of such loans typically start out at 10%. But the term lengths for these loans are relatively shorter, making the rate far less important. As it pertains to short-term loans of 1 or 2 years or even less, you should consider them identical to any other expenditure for the project. When you have sold the property or home and have made a positive return, you're able to reclaim this expense from the property — much like recuperating the money spent on the brand-new kitchen appliances that you installed.
Apart from this, hard money mortgages are easy qualifying, regardless if you have very bad credit. Copperas Cove hard money lenders do not approve a loan exclusively judging by the customer's credit score — instead they also look at the property or home, its location and value, and the home's ability to pay back the financing without the help of the borrower. On top of this, if the individual can demonstrate prior experience in equivalent real estate projects, can put down cash towards a down payment, and the value of similar homes in the vicinity works in his favor, he will have a really good likelihood of qualifying to get a hard money real estate loan.
So should you run into a very good and lucrative investment opportunity, feel comfortable knowing you'll have a hard money lender in Copperas Cove, equipped to loan you the cash you'll need. Submit the contact form on this page or call us to discuss your property or properties.
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