Hard Money Loans in Corpus Christi
A remarkable buy on a fix and flip property in an excellent area of the city all of a sudden shows up — seems too good to be true. You've probably heard that competent house flippers, like the couple on HGTV's Flip or Flop, enjoy a remarkable average profit margin of around forty to fifty thousand dollars. And indeed, they are helped in a major way as a result of their professional experience, auction skills and knowledge of hard money loans. Nevertheless, you're convinced that your superb rehab and renovation knowledge will enable you to do a great job on this project — in addition, you've already lined up one of the best general contractors in the business to take on this project.
But where precisely do real estate investors get funding? A traditional lending institution, say for example a bank, takes at least one to two months to approve the mortgage and provide the monies. Due to the fact the sellers are wanting to find a fast closing, that does not appear to be a good option to you in the slightest.
With banks establishing harder loan standards in the past several years, it has become more challenging for a self-employed individual to get a mortgage loan, especially if his credit score is not perfect. So will a lack of funds keep you from following your aspirations? By no means, on the grounds that you could always go the Corpus Christi hard money loan route to finance your rehab project.
A hard money home loan in Corpus Christi offers what is considered essential to most real estate transactions — a very fast closing of just a 2-3 weeks and more often than not even less. What's more, the LTV value can reach up to 70% of the home's valuation, as estimated by a credentialed appraiser. With loan rates starting near 10%, hard money real estate loans may look, at first, to be more pricey compared to conventional bank financing. But in reality, the interest rate isn't as useful a measure for these loans, simply because they are not long-term financing. The cost of such short-term loans ought to be viewed on par with any other financial outlay that you will encounter in the course of the project. After you rehab and sell the home, recovering this expense is the same as recouping the one for stainless steel appliances you placed into the home.
In addition, even an individual with bad credit can easily qualify for a hard money mortgage. The borrower's credit score is not the lone determining factor for Corpus Christi hard money lenders — they also look at the property, what is it valued at, where it is located, and its ability to bring back their investment if things should not go as intended. Other variables that affect an applicant's eligibility for a hard money real estate loan include how much money he is able to put into a down payment, his prior experience being a real estate investor, and selling price of comparative, fairly recently sold properties in the neighborhood.
So should you run into a really good and lucrative flipping opportunity, rest assured you will have a hard money lender in Corpus Christi, ready to loan you the money you need. Enter your info into the form or give us a call to discuss your property.
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