Hard Money Loans in Douglasville
An incredible buy on a fix and flip opportunity located in a nice subdivision all of a sudden shows up — sounds so good that it is hard to believe. Professional residential home flippers, like the young couple on Flip or Flop, HGTV's reality flipping program, are capable of earning a profit of forty to fifty grand for the majority of homes. Naturally, you also understand that their results can be credited to the simple fact that they're experts, are well versed in hard money loans, they know the market really well and they also know how to work a public auction to buy their houses at a good deal. Still, your rehab and renovation knowledge isn't that bad either — aside from that, you've already identified an ideal general contractor to start the project.
But funding is a different problem entirely. A typical lender, for instance a bank, takes at a minimum 1 to 2 months to approve the loan and deliver the cash. With the home owners seeking a fast closing, that does not appear like a great idea to you at all.
To add to it, banks have been tightening up their lending standards as of late, making it tough for people to receive a regular home loan if their credit score is not perfect or he does not possess a consistent salaried job. So do you have to stop trying and forego your aspiration to get into the real estate market? Never, because you can always use the Douglasville hard money loan approach to pay for your home renovating project.
A hard money home loan in Douglasville offers you what is considered vital to most real estate deals — a quick closing of only a 2-3 weeks and oftentimes less. Aside from that, loans are made up to 70% loan-to-value of the as-is home's valuation, as established by a professional appraiser. On the surface, hard money real estate loans, with starting lending rates of 10%, appear to be costlier than bank lending products. But in reality, the lending rate isn't as pertinent for these loans, because they are not long-term financing. Short-term loans of a couple months to a handful of years are best approached in terms of cost of capital, the same as all other expenditures in connection with a project. Once you've resold the home and have made a good profit, you'll be able to recover this expense from the house — similar to recuperating the money spent on the brand-new kitchen appliances that you installed.
Furthermore, even a person with low credit can easily qualify for a hard money mortgage. Douglasville hard money lenders don't take on a loan exclusively judging by the person's credit score — rather they will analyze the home, its value and location, and the property's ability to pay back the loan on its own. Several other variables that affect an individual's approval for a hard money real estate loan include what amount of money he is able to put into a down payment, his prior experience as a real estate investor, and price of comparative, fairly recently sold properties in the area.
So in case you have found a really great home to flip with a huge prospect of returns, you've also found yourself a hard money lender in Douglasville that is happy to fund your flipping project. Complete the form on this page or get in touch with us via phone to talk about the property you have in mind.
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