Hard Money Loans in Dumas
Imagine you've come across this excellent deal for a fix and flip property in an ideal neighborhood, and you're either a skilled real estate investor or a newbie who wants to try his hand at flipping. You've probably heard that professional property flippers, such as the couple on HGTV's Flip or Flop, have an impressive average profit near $40,000 – $50,000. And sure, they are aided in a major way as a result of their professional experience, auction skills and familiarity with hard money loans. Nonetheless, your rehab and renovation skills aren't bad either — in any case, you have already found the right contractor to tackle the project.
But where do you obtain the necessary capital for flipping? For those who go after an ordinary bank loan, you will need to wait roughly one to two months up until the mortgage loan is authorized and your funding is readily available. So if you're anticipating a fast closing, you must be aware that this could set you back by a few weeks, making you miss out on the home.
On top of this, banks have already been tightening their lending criteria in recent times, which makes it hard for a person to get a traditional home loan if their credit situation is not flawless or he doesn't have a regular salaried profession. So should you stop trying and forego your desire to venture into fix and flips? Absolutely not, given that you also have the Dumas hard money loan option.
A hard money home loan in Dumas promises what's possibly most essential 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 property's valuation, as estimated by a certified appraiser. At first glance, hard money real estate loans, with starting interest rates of 10%, seem to be more expensive than bank lending products. But in reality, the lending rate isn't as relevant for these loans, since they are not long-term loans. Short-term loans of a couple months to a few years are best looked at in terms of cost of capital, similar to any other expenditure associated with a project. When you have sold the property and have made a successful profit, you'll be able to reclaim this expense from the property — much like recouping the money spent on the brand-new appliances for the kitchen that you installed.
Additionally, it's easy to obtain a hard money mortgage, even when your credit score is not that extraordinary. As an alternative for focusing only on the applicant's credit score or wages, Dumas hard money lenders, who may be a privately owned company or an individual, say yes to a loan as a result of evaluating the home value, how easy it will be to market, where it is located, and the odds of recovering their money in the event of foreclosure. Several other factors that impact an applicant's acceptance for a hard money real estate loan include what amount of money he is able to put into a down payment, his prior experience being a real estate investor, and selling price of comparable, recently sold residences in the area.
So in the event you run into a good and lucrative flipping opportunity, relax knowing you'll have a hard money lender in Dumas, able to lend you the money that you need. Submit the form or call us to talk about the property you have in mind.
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