Hard Money Loans in Daphne
Suppose that you've stumbled upon this truly good bargain on a fix and flip property in a great location, and you're either a skilled real estate investor or a first-timer who hopes to try his hand at flipping. You may have heard that professional home flippers, like the married couple on HGTV's Flip or Flop, enjoy a remarkable average profit of around forty to fifty thousand dollars. It goes without saying their rehabbing experience, knowledge of hard money loans, familiarity with the housing market, and auction talents have been large factors to their success. On the other hand, you are certain that your superb rehab and renovation skills will help you do an outstanding job on the project — additionally, you have already arranged to have one of the best building contractors in the area to take on the job.
But funding is often a different issue altogether. If you go after a conventional loan from the bank, you will wind up waiting around roughly 30-60 days until the loan is authorized and your money is ready to go. Thus if you are hoping for a fast closing, it is important you understand that this will set you back by a few weeks, causing you to miss out on the opportunity.
On top of this, banks have been tightening up their lending standards as of late, making it tough for someone to receive a typical home loan if their credit circumstances are not flawless or he does not possess a regular salaried profession. So will inadequate funding stop you from pursuing your aspirations? By no means, because you could always go the Daphne hard money loan route to finance your rehab project.
A hard money home loan in Daphne boasts what's perhaps most important to real estate investors — a quick closing in as little as a few weeks. Additionally, loans can be done for up to 70% loan-to-value of the "as is" home value, as determined by a qualified appraiser. With interest rates starting out around 10%, hard money real estate loans may appear, at first, to be higher priced compared to conventional bank loans. But once you consider these are not long-term mortgage loans, the rate of interest tends to be misleading. When it comes to short-term loans of several years or even less, you should think of them much like you would other expenditures for the project. Right after you remodel and unload the home, recovering this expense is the same as recuperating the expense for stainless steel appliances you placed into the property.
Moreover, even an individual with low credit can still be eligible for a hard money mortgage. Instead of focusing strictly on the applicant's credit score or source of income, Daphne hard money lenders, who can be a privately owned company or an individual, approve a loan after analyzing the home value, its salability, where it is located, and the possibility of recovering their money in case they have to foreclose the loan. Adding to that, if the applicant have proven experience in comparable real estate endeavors, can put down cash for the down payment, and the cost of similar houses in the vicinity works in his favor, he has got an excellent likelihood of qualifying to obtain a hard money real estate loan.
So in the event you come across an outstanding and profitable investment opportunity, rest assured you'll have a hard money lender in Daphne, prepared to loan you the capital that you need. Fill out the contact form on this page or get in touch with us via phone and let's discuss your property.
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