Hard Money Loans in Denton
An incredible buy on a fix and flip opportunity in a nice neighborhood suddenly turns up — seems so good that it is difficult to believe. Expert house flippers, such as the young married couple on Flip or Flop, HGTV's reality flipping program, are able to haul in a gain of $40-$50k for the majority of homes. Without question, their rehabbing experience, understanding of hard money loans, expertise in their market, and auction skills have had an important part in their results. Having said that, you have also been developing your rehab and renovation knowledge, have a very good building contractor ready to go and are positive that you're capable of doing a bang up job for this home.
But where can real estate investors obtain capital? If you opt for a normal loan via a bank, you will wind up waiting around approximately one to two months before the money is approved and the funds are available. Thus if you are looking for a fast closing, it is important you understand or know that this could cost you a couple of weeks, causing you to miss out on the house.
With banks establishing tougher loan criteria in the last few years, it is harder for a self-employed person to get a home loan, particularly if his credit rating is not perfect. So does this leave you with no other option, but to drop your dream to venture into home flipping? Certainly not, on the grounds that you could always use the Denton hard money loan approach to finance your home flipping project.
A hard money home loan in Denton provides what is viewed as imperative to many real estate transactions — a very fast closing of only a couple of weeks and at many times less. Plus, the LTV value can range up to 70% of the home value, as estimated by a credentialed appraiser. At first, hard money real estate loans, with starting interest rates of 10%, appear to be higher in price than bank lending products. But the time frames of these loans are rather short, which makes the rate far less significant. As it pertains to short-term loans of a handful of years or less, you should consider them much like you would other expenditures for your project. When you have sold the home and have made a successful gain, you're able to recover this expense from the home — the same as recovering the money spent on the brand-new appliances for the kitchen that you installed.
Moreover, even a person with weak credit will be able to qualify for a hard money mortgage. The applicant's credit score isn't the single deciding factor for Denton hard money lenders — additionally, they look at the house, how much it is worth, its location, and its potential to return their financial commitment if things do not go as planned. The amount that a borrower can put down beforehand for the property or home, his past real estate experience, and selling price of equivalent properties in the area are additional factors that go into determining an applicant's suitability for a hard money real estate loan.
So any time you run into a really good and lucrative investment opportunity, relax knowing you will have a hard money lender in Denton, ready to lend you the funds you need. Fill out the contact form or give us a call and let's talk about your property or properties.
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