Hard Money Loans in Durant
There is this phenomenal opportunity to fix and flip this wonderful old condo in a good part of town and it looks a lot like the deal you've been expecting for quite some time. Expert residential home flippers, like the young married couple on Flip or Flop, HGTV's reality flipping program, are capable of generating a profit of forty to fifty grand on most projects. And indeed, they are aided in a major way due to their professional know-how, auction skills and familiarity with hard money loans. With that being said, you've also been developing your rehab and renovation skills, have a very good building contractor arranged and are confident that you will be able to do a great job on this home.
But how can you get the necessary capital for home flipping? When you meet with a regular lender, such as a bank for financing, it in all likelihood will take no less than 4-8 weeks for your approval to come through and the funds to be furnished. So if you happen to be looking for a fast closing, you have to understand or know that this could cost you a couple of weeks, making you lose out on the house.
With banks establishing more challenging loan standards in recent years, it is now more challenging for a self-employed person to find a home loan, especially when his credit situation is not optimal. So will inadequate funds stop you from following your ambitions? Certainly not, seeing as you always have the Durant hard money loan option.
If you opt for a hard money home loan in Durant, you have access to what is probably most essential to real estate negotiations throughout the country — a fast closing of about a couple weeks. Plus, the LTV value can go up to 70% of the home value, as determined by a credentialed appraiser. Some people believe hard money real estate loans to be more costly than standard loans, because the interest rates of such loans ordinarily start off at 10%. But the term lengths for these loans are relatively shorter, making the rate less important. Short-term loans of a couple months to a handful of years are best approached in terms of cost of capital, much like any other expenditure associated with a project. After you rehab and resell the home, recouping this expense is no different than recovering the cost of the stainless steel appliances you placed into the home.
Aside from that, hard money mortgages are easy qualifying, regardless if you have a bad credit score. The customer's credit score is not the primary determining factor for Durant hard money lenders — in addition, they examine the piece of real estate, its market value, its location, and its potential to return their financial commitment if things should not work out as planned. How much a borrower can put upfront towards the property, his past real estate experience, and price range of equivalent homes in the area are various other details that go into analyzing an individual's eligibility for a hard money real estate loan.
Searching for a hard money lender in Durant to help with expenses for your flipping business is not hard, as long as the opportunity that lies ahead of you is promising and boasts the right prospect for returns. Complete the form or give us a call and let's talk about your project.
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