Hard Money Loans in Duncan
Suppose that you've run across this truly good deal on a fix and flip property in a terrific neighborhood, and you are either a skilled real estate investor or a first-timer who really wants to try his hand at flipping. Expert home flippers, like the young couple on Flip or Flop, HGTV's reality flipping program, are capable of bringing in a profit of forty to fifty grand on a consistent basis. Undoubtedly, you also recognize that their success can be credited to the fact that they're industry experts, are proficient in hard money loans, they know the market quite well and in addition, they know how to work an auction to buy their houses at an appropriate deal. Still, your rehab and remodeling knowledge isn't that bad either — aside from that, you have already located a good licensed contractor to tackle the job.
But how can you find the needed funding for flipping? When you opt for a regular loan from the bank, you will end up waiting around approximately one to two months up until the money is approved and your funds are readily available. With the home owners seeking a fast closing, that doesn't appear to be a wise idea to you at all.
To add to it, banks have already been tightening their lending requirements in recent years, rendering it more challenging for a person to obtain a typical home loan if their credit score is not flawless or he is lacking a regular salaried job. So does that leave you with no other option, but to give up your ambition to venture into the fix and flip business? By no means, on the grounds that you could always use the Duncan hard money loan approach to finance your home flipping project.
If you apply for a hard money home loan in Duncan, you're going to get what is possibly most essential to real estate offers across the country — a quick closing of approximately a couple weeks. Further, loans can be made up to 70% loan-to-value of the "as is" house value, as determined by a licensed appraiser. With loan rates starting off near 10%, hard money real estate loans may seem, at first, to be more expensive when compared with conventional bank loans. But the lengths of these loans are relatively shorter, which means the interest rate is less significant. Short-term loans of a couple of months to a handful of years are best approached as cost of capital, very much like any other expense associated with a project. And once you have turned the property, recouping this expense is identical to recuperating the expense for the bathroom upgrades you performed.
Besides, hard money mortgages are easy qualifying, even if you have poor credit. Instead of focusing only on the applicant's credit score or source of income, Duncan hard money lenders, who may be a private company or an individual, say yes to a loan after evaluating the property value, ease of marketability, where it is located, and the odds of recovering their money in case of foreclosure. Additional factors that affect an individual's approval for a hard money real estate loan include the amount he is able to put into a down payment, his previous experience as a real estate investor, and price of similar, fairly recently sold homes in the vicinity.
If you happen to have found a really great real estate opportunity with a huge potential for returns, you've also stumbled upon a hard money lender in Duncan that's willing to fund your fix and flip projects. Fill out the form or get in touch with us via phone to talk about your property.
A loan specialist will be in touch shortly