Hard Money Loans in DeRidder
There is this outstanding opportunity to fix and flip this nice old condo in a good part of town and it looks a lot like the one you've been wanting for quite some time. Professional house flippers, such as the young couple on Flip or Flop, HGTV's reality flipping show, are able to generate a gain of forty to fifty grand for most homes. Undoubtedly, you also realize that their results are credited to the simple fact that they're industry experts, are proficient in hard money loans, they understand the marketplace quite well and furthermore, they are good at working a public auction for getting an appropriate deal. Nevertheless, you're certain that your impressive rehab and remodeling talents will enable you to do a superb job on this house — furthermore, you have already arranged to have one of the most sought after contractors in the business to take on the project.
But funding is a different question altogether. When you approach a regular lender, such as a bank for a loan, it can take no less than thirty to sixty days for the acceptance to be completed and the funds to be accessible. Considering that the sellers are looking for a fast closing, that does not appear like a good option to you at all.
With banks introducing harder loan standards in recent times, it has become tougher for a self-employed person to obtain a home loan, especially if his credit situation is not perfect. So does this mean you have no option, but to abandon your ambition of getting into home flipping? Never, considering that you can always use the DeRidder hard money loan approach to pay for your rehab project.
A hard money home loan in DeRidder offers you what is considered essential to many real estate transactions — a quick closing of just a 2-3 weeks and more often than not less. Besides that, hard money lenders will often consent to funding up to 70% LTV of the property value, as estimated by a qualified third-party evaluation. On the surface, hard money real estate loans, with starting interest rates of 10%, seem to be costlier than bank lending options. But usually, the lending rate is not as pertinent for these loans, because they aren't long-term financing. The price of such short-term loans should be considered on par with any other expense that you would encounter during the project. Once you have sold the house and have made a positive return, you can recoup this expense from the property — much like recovering the money spent on the brand-new home appliances that you have installed.
Additionally, it is easy to be eligible for a hard money mortgage, regardless of whether your credit situation is not that extraordinary. The customer's credit score will not be the sole deciding factor for DeRidder hard money lenders — additionally, they look at the home, what is it valued at, its location, and its capability to return their investment if everything does not work out as planned. Adding to that, if the applicant can demonstrate past experience in equivalent real estate ventures, can put down cash for the down payment, and the cost of similar properties in the area works to his benefit, he has a good shot of being eligible to obtain a hard money real estate loan.
So if you have found a really good home to flip with a high chance of returns, you have also found yourself a hard money lender in DeRidder that is willing to finance your flipping ventures. Fill out the form or get in touch with us via phone and let's discuss the property you have in mind.
A loan specialist will be in touch shortly