Hard Money Loans in Corsicana
Suppose you've run across this really great deal for a fix and flip property located in an ideal location, and you are either a skilled real estate investor or a first-timer who really wants to try out flipping homes. You've heard that competent property flippers, like the husband and wife on HGTV's Flip or Flop, enjoy an impressive average profit margin of around $40,000 – $50,000. And indeed, they are helped in a big way as a result of their professional know-how, auction abilities and knowledge of hard money loans. Still, your rehab and remodeling knowledge isn't bad either — besides, you have already identified a suitable contractor to tackle this home.
But how can real estate investors find capital? A typical lending institution, say for example a bank, takes at a minimum one to two months to authorize the loan and release the monies. With all the sellers seeking a fast closing, that doesn't seem like a good option to you at all.
On top of this, banks have already been tightening their lending requirements in recent times, which makes it tough for people to receive an ordinary loan if their credit score is not flawless or he is lacking a consistent salaried profession. So do you have to stop trying and abandon your aspiration to embark into fix and flips? Most certainly not, because you always have the Corsicana hard money loan option.
A hard money home loan in Corsicana provides what is considered crucial to many real estate transactions — a fast closing of just a couple of weeks and at many times even less. And additionally, financing can be done for up to 70% loan-to-value of the "as is" property value, as determined by a professional appraiser. With the loan rates starting off at about 10%, hard money real estate loans may look, at first, to be more costly when compared with conventional bank financing. But when you consider these loans are not long-term loans, the rate may be misleading. Short-term loans of a couple months to a few years are best looked at in terms of cost of capital, much like any other expense involved with a project. Once you have turned the property or home and have made a good financial gain, you can recoup this expense from the property — very much like recouping the money spent on the brand-new home appliances that you've installed.
What's more, it's simple to be eligible for a a hard money mortgage, regardless of whether your credit situation is not that impressive. The borrower's credit score will not be the primary deciding factor for Corsicana hard money lenders — they also look at the house, what is it valued at, where it is located, and its potential to return their financial commitment if things should not go as planned. Additional variables that impact a customer's acceptance for a hard money real estate loan can include the amount he is in a position to put towards a down payment, his former experience being a real estate investor, and price of comparable, recently sold homes in the vicinity.
So any time you come across a very good and profitable investment opportunity, feel comfortable knowing you'll have a hard money lender in Corsicana, equipped to lend you the money you'll need. Complete the form or call us to talk about the property you have in mind.
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