Hard Money Loans in Durango
An outstanding deal on a fix and flip property in a very good subdivision shows up out of the blue — sounds so good that it is hard to believe. You've probably heard that veteran home flippers, such as the husband and wife on HGTV's Flip or Flop, turn an impressive average profit margin close to forty to fifty thousand dollars. And indeed, they are aided in a big way by their professional experience, auction expertise and knowledge of hard money loans. However, you're certain that your first class rehab and remodeling talents will enable you to do a superb job on the house — additionally, you already have arranged to have one of the best building contractors in town to take care of this project.
But how can you get the necessary capital for home flipping? For those who go after a normal loan from the bank, you will wind up waiting approximately 1-2 months up until the time the mortgage is approved and the money is accessible. Due to the fact the sellers are wanting to find a fast closing, that does not appear to be a good idea to you in the slightest.
Furthermore, for those who have a less-than-perfect credit score or do not have a consistent source of income, it can be more challenging for you to obtain bank financing, with the tougher loan criteria banks have introduced of late. So should you give up and forego your dream to embark into fix and flips? Absolutely not, because you always have the Durango hard money loan alternative.
A hard money home loan in Durango provides you with what is probably most sought after by real estate investors — a very fast closing in as few as a few weeks. And additionally, financing is made up to 70% loan-to-value of the as-is valuation, as deemed by a qualified appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, could be seen as costlier than bank loans. But the term lengths for these loans are fairly short, which makes the rate less significant. When it comes to short-term loans of 1 or 2 years or even less, you should look at them the same as you might for every other expense for your project. Right after you fix up and unload the property, recovering this expense is the same as recovering the expense for new kitchen appliances you put in the property.
Besides, hard money mortgages are not difficult to qualify for, even if you have bad credit. The borrower's credit score is not the lone determining factor for Durango hard money lenders — additionally, they look at the property, its market value, its location, and its potential to return their investment if everything does not work out as intended. How much an applicant can put down in advance towards the property, his past real estate experience, and price range of equivalent homes in the same vicinity are various other factors that go into establishing an individual's eligibility for a hard money real estate loan.
So should you run into a really good and profitable flipping opportunity, be assured you'll have a hard money lender in Durango, prepared to loan you the cash you will need. Submit the form or give us a call to talk about your project.
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