Hard Money Loans in Del Rio
There is this amazing opportunity to renovate and flip this wonderful old home in a good location and it looks a lot like the one you've been expecting for a long time. Everyone knows that knowledgeable professional flippers, such as Tarek and Christina El Moussa who star in HGTV's reality home flipping show, Fix or Flop, can readily make a typical profit of forty to fifty thousand dollars in their rehab business. And yes, they are aided in a major way by their professional knowledge, auction abilities and knowledge of hard money loans. That said, you've likewise been cultivating your rehab and renovation skills, have got a general contractor lined up and are certain that you will be able to do a great job on this property.
But financing is a separate problem entirely. If you get in touch with a standard lender, such as a bank for a mortgage loan, it more than likely will take, at a minimum, four to eight weeks for your approval to be completed and your money to be dispersed. With the sellers seeking a fast closing, that does not appear like a wise idea to you at all.
To add to it, banks have been tightening their lending criteria in recent years, which makes it difficult for a person to obtain a regular loan if their credit score is not perfect or he does not have a consistent salaried occupation. So do you have to admit defeat and forego your desire to venture off into fix and flips? Certainly not, because you also have the Del Rio hard money loan option.
If you apply for a hard money home loan in Del Rio, you'll get what is perhaps most important to real estate offers across the country — a quick closing of around two weeks. Also, hard money lenders can do funding up to 70% LTV of the property or home's valuation, as identified by a certified third-party evaluation. On the surface, hard money real estate loans, with starting lending rates of 10%, appear to be higher in price than bank loans. But the lengths of these loans tend to be fairly short, which means the rate is far less important. The price tag on such short-term loans ought to be considered much like any other financial outlay that you would need to meet pertaining to the project. Right after you rehab and resell the property, recouping this expense is no different than recuperating the expense for stainless steel appliances you installed in the home.
In addition, even a person with low credit can still qualify for a hard money mortgage. Del Rio hard money lenders do not approve a loan solely judging by the customer's credit score — instead they will assess the home, its location and value, and the property's ability to pay back the financing independent of the borrower. Adding to this, if the borrower can demonstrate prior experience in equivalent real estate ventures, can place down cash towards a down payment, and the price of comparable homes in the vicinity works in his favor, he has a very good shot of qualifying for a hard money real estate loan.
Finding a hard money lender in Del Rio to finance your flipping business is not very hard, as long as the opportunity that lies ahead of you is promising and boasts the right prospect for returns. Enter your info into the contact form or call us to discuss your project.
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