Hard Money Loans in Dalworthington Gardens
Imagine you've run across this truly good bargain on a fix and flip property you found in a great location, and you are either a seasoned real estate investor or a newbie who hopes to try out flipping homes. Most folks know that expert professional flippers, such as Tarek and Christina El Moussa who do HGTV's reality home flipping program, Fix or Flop, are able to generate a typical profit of $40,000 to $50,000 in their rehab business. Of course, you also recognize that their successes are attributed to the simple fact that they're industry experts, are proficient in hard money loans, they understand the market quite well and furthermore, they are good at working an auction for getting a good deal. However, you are convinced that your superb rehab and remodeling talents can help you do a great job for this home — in addition, you already have lined up one of the best contractors in the area to work on the job.
But where can you find the needed funding for home flipping? For those who approach a standard lending institution, like a bank for funding, it's in all likelihood going to take, at the very least, 30-60 days for the acceptance to be completed and the funds to be given out. Since the majority of sellers favor a fast closing, you might need to begin looking for other funding alternatives.
To add to it, banks have been tightening their lending criteria in recent times, which makes it hard for people to obtain a typical loan if their credit circumstances are not flawless or he is lacking a regular salaried occupation. So does this leave you with no other option, but to give up your aspiration of getting into rehabbing? Most certainly not, given that you also have the Dalworthington Gardens hard money loan alternative.
If you obtain a hard money home loan in Dalworthington Gardens, you'll get what is perhaps most important to real estate transactions across the country — a quick closing of around 2 weeks. Furthermore, hard money lenders can approve lending up to 70% LTV of the home value, as assessed by a professional third-party evaluator. With the lending rates starting at about 10%, hard money real estate loans may seem, at first, to be more expensive as compared with conventional bank lending products. But usually, the interest rate isn't as useful a measure for these loans, given that they are not long-term financing. When it comes to short-term loans of one or two years or less, you should consider them the same as you might for any other expenditure for the project. After you rehab and sell the home, recovering this expense is no different than recovering the expense for new kitchen appliances you placed into the property.
In addition, even a person with low credit will be able to qualify for a hard money mortgage. Dalworthington Gardens hard money lenders do not approve a loan exclusively judging by the customer's credit score — instead they also look at the home, where it is located and how much it is worth, and the property's ability to pay back the financing on its own. Several other factors that impact an applicant's acceptance for a hard money real estate loan can include how much he can put into a down payment, his former experience being a real estate investor, and price of comparable, recently sold properties in the neighborhood.
Locating a hard money lender in Dalworthington Gardens to finance your fix and flip endeavor is not very hard, assuming that the opportunity that lies ahead of you is promising and has a strong prospect for returns. Complete the form on this page or get in touch with us via phone and let's talk about your project.
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