Hard Money Loans in Dawsonville
You discovered this outstanding possibility for fixing and flipping this wonderful out of date condo in a good part of town and it seems a lot like the one you have been eagerly waiting on for a long time. Expert house flippers, such as the young couple on Flip or Flop, HGTV's reality flipping show, are able to bring in a gain of $40-$50k on the majority of projects. It goes without saying their rehabbing experience, knowledge of hard money loans, familiarity with the market, and auction skills have played a significant part in their results. With that being said, you have recently been brushing up your rehab and remodeling knowledge, have got a contractor ready for the project and are confident that you will be able to do a stellar job on this house.
But financing is often a different issue altogether. In the event you opt for a regular loan from the bank, you will end up waiting around approximately one to two months up until the time the financing is approved and the funds are readily available. So if you're hoping for a fast closing, it's important for you to recognize that this could set you back by a couple of weeks, making you lose out on the opportunity.
To add to it, banks have already been tightening up their lending requirements in recent years, rendering it more difficult for people to get a regular loan if their credit circumstances are not perfect or he does not have a consistent salaried occupation. So does this mean you have no option, but to drop your dream of venturing into the fix and flip business? Never, considering that you could always use the Dawsonville hard money loan approach to pay for your home renovating project.
A hard money home loan in Dawsonville offers what's viewed as imperative to most real estate transactions — a very fast closing of only a 2-3 weeks and at times less. Furthermore, hard money lenders are able to do lending up to 70% LTV of the home value, as estimated by a credentialed third-party evaluator. Some people believe hard money real estate loans to be more pricey than ordinary financing, since the interest rates for such loans commonly start off at 10%. But in reality, the interest rate is not as useful a measure for these loans, given that they will never be long-term loans. Short-term loans of a couple of months to a handful of years are best thought of in terms of cost of capital, the same as any other financial outlay associated with a project. After you remodel and unload the house, recuperating this expense is the same as recuperating the one for stainless steel appliances you placed into the home.
Furthermore, even a person with weak credit can still be eligible for a hard money mortgage. The person's credit score will not be the lone determining factor for Dawsonville hard money lenders — in addition, they analyze the piece of real estate, its market valuation, its location, and its potential to earn back their investment if things do not work out as planned. Other criteria that influence a borrower's acceptance for a hard money real estate loan can include how much money he is able to put towards a down payment, his past experience as a real estate investor, and price of comparable, recently sold homes in the vicinity.
So should you come across an outstanding and worthwhile investment opportunity, feel comfortable knowing you will have a hard money lender in Dawsonville, in a position to loan you the money you'll need. Submit the contact form or give us a call and let's talk about the project you have in mind.
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