Hard Money Loans in Corrales
Suppose you've run into this truly good bargain for a fix and flip property in a terrific location, and you're either a skilled real estate investor or a newbie who wants to try out flipping homes. Professional residential home flippers, like the young couple on Flip or Flop, HGTV's reality flipping show, are able to generate a profit of forty to fifty grand as an average on more than one occassion. It's fair to say their past experiences rehabbing, knowledge of hard money loans, expertise in their market, and auction talents have been major factors to their successes. Nonetheless, your rehab and renovation skills aren't bad either — in any case, you've already found a good building contractor to handle the job.
But financing is a separate issue altogether. A typical lender, for instance a bank, takes a minimum of one to two months to consent to the mortgage and hand over the capital. Considering that the sellers are looking for a fast closing, that does not seem like a good idea to you in the slightest.
Moreover, in case you have a less-than-perfect credit rating or don't have a consistent source of income, it is usually more difficult to obtain a bank loan, seeing the stricter loan guidelines banks have issued in recent times. So must you give up and abandon your desire to venture off into fix and flips? Absolutely not, because you always have the Corrales hard money loan alternative.
A hard money home loan in Corrales provides what is probably most important to real estate investors — a fast closing time period of as few as two weeks. Plus, the LTV value can range up to 70% of the home value, as evaluated by a certified appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, appear to be costlier than bank loans. But if you consider these loans are not long-term home loans, the rate tends to be misleading. Short-term loans of a couple of months to a few years are best looked at as cost of capital, the same as any other expenditure related to a project. After you rehab and sell the house, recovering this expense is no different than recovering the expense for new kitchen appliances you put in the home.
Also, it isn't difficult to obtain a hard money mortgage, even when your credit score is not that great. As an alternative for focusing solely on the borrower's credit score or net income, Corrales hard money lenders, who can be a private company or an individual, say yes to a loan after evaluating the home value, how easy it will be to market, where it is located, and the probability of recuperating their money should they have to foreclose the loan. Several other criteria that influence a customer's approval for a hard money real estate loan can include how much money he can put towards a down payment, his prior experience being a real estate investor, and selling price of similar, recently sold residences in the vicinity.
So in case you have stumbled upon a really good real estate opportunity with a high prospect of returns, you have also stumbled upon a hard money lender in Corrales who is prepared to provide funding for your rehab ventures. Submit the form on this page or give us a call and let's talk about your property or properties.
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