Hard Money Loans in Cusseta
A fantastic bargain on a fix and flip opportunity in a nice area of the city suddenly turns up — sounds so good that it's hard to believe. You may have heard that professional home flippers, like the couple on HGTV's Flip or Flop, have an impressive average profit close to $40,000 – $50,000. Without question, their rehabbing experience, knowledge of hard money loans, familiarity with the housing market, and auction talents have played a big role in their successes. On the other hand, you're assured that your superb rehab and renovation talents can help you do an outstanding job on this property — furthermore, you already have lined up one of the best general contractors in the area to take on the project.
But how can you get the necessary financing for flipping? A standard lending institution, say for example a bank, takes at a minimum one to two months to authorize the financing and release the funds. With all the home owners wanting a fast closing, that doesn't seem like a good idea to you whatsoever.
As well as this, should you have a sub-optimal credit situation or do not have a conventional income, it usually is more difficult to qualify for bank financing, with the tighter loan guidelines banks have put in place of late. So does that mean you have no option, but to drop your dream of getting into rehabbing? Definitely not, because you always have the Cusseta hard money loan option.
A hard money home loan in Cusseta provides you with what's possibly most sought after by real estate investors — a very fast closing in as few as a few weeks. Aside from that, loan amounts are made up to 70% loan-to-value of the "as is" property value, as established by a licensed appraiser. Some people believe hard money real estate loans to be more costly than ordinary financing, considering lending rates for these loans generally start at 10%. But the time frames of these loans are comparatively short, making the interest rate less significant. When it comes to short-term loans of a handful of years or even less, you should consider them just like you would other expenditures for your project. When you have sold the home and have made a positive financial gain, you're able to get back this expense from the property or home — just like recovering the money necessary for the brand-new home appliances that you have installed.
In addition, even an individual with low credit can easily be eligible for a hard money mortgage. The person's credit score isn't the single determining factor for Cusseta hard money lenders — they also analyze the home, what is it valued at, its location, and its ability to bring back their financial commitment if things should not work out as planned. How much of their own money a person can put down in advance for the property or home, how much practical experience he has in real estate investing, and price range of comparable properties in the neighborhood are additional factors that go into ascertaining a borrower's suitability for a hard money real estate loan.
So if you have found a wonderful fixer-upper with a huge probability of returns, you have also discovered a hard money lender in Cusseta who is willing to finance your fix and flip ventures. Submit the form on this page or give us a call to talk about your property.
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