Hard Money Loans in Dimmitt
Suppose you've come across this truly good bargain on a fix and flip property located in a great location, and you happen to be either an experienced real estate investor or a first-timer who wants to try his hand at flipping. You've probably heard that professional house flippers, such as the husband and wife on HGTV's Flip or Flop, have an impressive average return of around $40,000 – $50,000. Without question, their rehabbing experience, knowledge of hard money loans, familiarity with the housing market, and auction skills have been major factors to their results. Nonetheless, your rehab and renovation skills aren't bad either — besides, you've already identified a suitable contractor to start the job.
But how can you find the necessary financing for home flipping? For those who meet with a customary lender, like a bank for funding, it's in all likelihood going to take a minimum of 30-60 days for the approval to come through and your funds to be dispersed. Considering that the sellers want a fast closing, that does not appear like a great idea to you at all.
Furthermore, should you have a sub-optimal credit rating or don't have a consistent source of income, it may be harder to qualify for bank financing, considering the stricter loan requirements banks have introduced recently. So must you admit defeat and abandon your desire to embark into the real estate market? Most certainly not, seeing as you also have the Dimmitt hard money loan alternative.
A hard money home loan in Dimmitt provides what's probably most crucial to real estate investors — a very fast closing time of as few as two weeks. What's more, the LTV value can reach up to 70% of the place's valuation, as evaluated by a certified appraiser. Some individuals consider hard money real estate loans to be costlier than standard loans, considering interest rates for such loans ordinarily start at 10%. But in reality, the interest rate is not as pertinent for these loans, simply because they aren't long-term financing. When it comes to short-term loans of one or two years or less, you should think about them just like you would other expenditures for the project. And when you have flipped the property or home, recouping this expense is the exact same as recuperating the expense for all the bathroom updates you performed.
In addition, even someone with poor credit can easily qualify for a hard money mortgage. Dimmitt hard money lenders do not take on a loan solely according to the person's credit score — rather they will evaluate the property, its location and value, and the home's ability to pay back the financing on its own. How much an individual can put upfront for the property, how much experience he has in real estate investing, and price range of comparable homes in the same vicinity are various other details that go into establishing a person's suitability for a hard money real estate loan.
So any time you come across a really good and worthwhile investment opportunity, feel comfortable knowing you will have a hard money lender in Dimmitt, willing to lend you the funds you need. Fill out the form or call us and let's talk about the project you have in mind.
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