Hard Money Loans in De Leon
An outstanding deal on a fix and flip property in a nice area of the city suddenly turns up — seems too good to be true. Everyone knows that expert professional flippers, like Tarek and Christina El Moussa who do HGTV's reality home flipping program, Fix or Flop, can readily make an average profit margin of $40,000 to $50,000 on their home projects. It's fair to say their past experiences rehabbing, understanding of hard money loans, expertise in their housing market, and auction talents have had a significant role in their successes. On the other hand, you are convinced that your superb rehab and remodeling abilities can help you do a superb job on this property — furthermore, you already have lined up one of the most sought after contractors in the area to take care of this job.
But where do you find the needed financing for home flipping? A typical lending institution, like for example a bank, takes at a minimum one to two months to authorize the loan and provide the money. Since the majority of sellers give preference to a fast closing, you may want to start searching for other funding options.
With banks establishing harder loan requirements in the recent past, it is much harder for a self-employed person to obtain a home loan, particularly if his credit situation is not flawless. So do you have to admit defeat and forego your ambition to get into fix and flips? Not at all, particularly when De Leon hard money loans will assist you to realize great things in real estate.
A hard money home loan in De Leon gives you what's perhaps most sought after by real estate investors — a fast closing time of as few as 2 weeks. Furthermore, hard money lenders frequently agree to loans up to 70% LTV of the property or home's valuation, as determined by a licensed third-party evaluation. A number of people regard hard money real estate loans to be more costly than ordinary financing, since the interest rates of such loans typically start out at 10%. But the lengths of these loans tend to be relatively short, which makes the interest rate far less significant. When it comes to short-term loans of a few years or less, you should consider them just like you would other expenditures for the project. And once you've finally turned the home, recouping this expense is identical to recouping the expense for all the bathroom updates you performed.
Furthermore, even an individual with weak credit can still qualify for a hard money mortgage. Instead of focusing solely on the applicant's credit score or source of income, De Leon hard money lenders, who may be a private company or an individual, approve a loan after evaluating the property value, its salability, its location, and the odds of getting back their money in case of foreclosure. Additional variables that impact a borrower's acceptance for a hard money real estate loan include what amount of money he can put into a down payment, his former experience being a real estate investor, and price range of comparable, just recently sold residences in the area.
So any time you run into a good and worthwhile flipping opportunity, rest assured you will have a hard money lender in De Leon, ready to lend you the money you'll need. Fill out the form or call us and let's discuss your property.
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