Hard Money Loans in Denver City
A remarkable bargain on a fix and flip opportunity located in an excellent subdivision shows up out of the blue — seems so good that it's hard to believe. Everybody knows that skilled professional flippers, such as Tarek and Christina El Moussa who star in HGTV's reality flipping series, Fix or Flop, are able to generate an average profit margin of $40,000 to $50,000 on their home projects. Undoubtedly, you also recognize that their success are credited to the fact that they are professionals, are well versed in hard money loans, they know market trends really well and furthermore, they are good at working a public auction to purchase their houses at a good deal. That said, you've also been developing your rehab and remodeling knowledge, have a contractor ready for the project and are positive that you're capable of doing an impressive job for this house.
But money can be a different problem altogether. For those who apply for a regular loan from the bank, you will have to wait somewhere around one to two months until eventually the mortgage loan is approved and the money is readily available. So if you're hoping for a fast closing, it is important you understand that this will cost you a couple weeks, making you lose out on the sale.
With banks introducing more challenging loan criteria in the past few years, it is now more difficult for a self-employed individual to get a home loan, especially when his credit rating is not flawless. So does this leave you with no option, but to drop your ambition of getting into home renovating? Not at all, especially when Denver City hard money loans enable you to achieve great things in real estate.
A hard money home loan in Denver City promises what's probably most essential to real estate investors — a quick closing time of as few as 14 days. And additionally, financing can be made up to 70% loan-to-value of the "as is" house's valuation, as established by a professional appraiser. Some people regard hard money real estate loans to be higher in price than regular financing, since the lending rates of such loans normally start out at 10%. But in reality, the interest rate is not as useful a measure for these loans, because they aren't long-term financing. The cost of such short-term loans ought to be looked at much like any other financial outlay that you would need to meet pertaining to the project. Right after you rehab and sell the property, recovering this expense is the same as recovering the cost of the new kitchen appliances you put in the property.
In addition, even an individual with poor credit can still qualify for a hard money mortgage. Denver City hard money lenders don't approve a loan strictly on the basis of the customer's credit score — rather they will evaluate the property or home, its location and value, and the property's capacity to pay back the loan without the assistance of the borrower. The amount that an individual can put down in advance for the property or home, his past real estate experience, and price range of equivalent homes in the same area are other details that go into ascertaining a borrower's suitability for a hard money real estate loan.
Searching for a hard money lender in Denver City to help with expenses for your renovation project is not very challenging, so long as the opportunity before you is promising and offers the right potential for returns. Submit the form on this page or get in touch with us via phone and let's talk about your project.
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