Hard Money Loans in Dothan
Imagine you've run across this really great deal for a fix and flip property you found in a terrific location, and you happen to be either a skilled real estate investor or a newbie who hopes to try his hand at flipping. Professional home flippers, like the young couple on Flip or Flop, HGTV's reality flipping program, are capable of earning a gain of forty to fifty grand on average. Undoubtedly, you also realize that their results can be credited to the simple fact that they're professionals, are proficient in hard money loans, they understand market trends quite well and in addition, they know how to work an auction for getting an appropriate deal. Nonetheless, your rehab and remodeling skills aren't bad either — in any case, you've already identified a suitable contractor to handle the project.
But how do you find the needed funding for home flipping? For those who get in touch with a regular lender, such as a bank for a mortgage loan, it is likely going to take, at the very least, four to eight weeks for the acceptance to come through and the funds to be dispersed. Since most home owners favor a fast closing, it may be advisable to begin searching for additional financing alternatives.
What's more, for those who have an unfavorable credit situation or don't receive a routine income source, it is usually harder to obtain a bank loan, with the stricter loan guidelines banks have introduced recently. So does this leave you with no other option, but to abandon your ambition of getting into home flipping? Under no circumstances, particularly when Dothan hard money loans enable you to realize many amazing things in real estate.
A hard money home loan in Dothan gives you what is possibly most crucial to real estate investors — a quick closing time of as few as two weeks. Additionally, financing is made up to 70% loan-to-value of the "as is" value, as determined by a licensed appraiser. With rates starting near 10%, hard money real estate loans might appear, at first glance, to be more pricey as compared with conventional bank financing. But the lengths of these loans are comparatively short, which means the rate is less important. The cost of such short-term loans ought to be evaluated much like any other cost that you would have to meet for the project. And once you have finally flipped the property, recovering this expense is identical to recovering the expense for all the bathroom updates you performed.
What's more, it is simple to be eligible for a a hard money mortgage, even if your credit score is not that superb. Dothan hard money lenders don't take on a loan strictly based on the customer's credit score — rather they additionally assess the property or home, its value and location, and the property's ability to pay back the loan independent of the person. Adding to this, if the person can demonstrate prior experience in equivalent real estate projects, can put down money towards the down payment, and the cost of equivalent properties in the area works to his benefit, he stands an excellent likelihood of being eligible to get a hard money real estate loan.
So in case you have stumbled upon a wonderful home to flip with a huge chance of returns, you've also stumbled upon a hard money lender in Dothan that is ready to fund your rehab ventures. Enter your info into the contact form or call us and let's discuss the project you have in mind.
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