Hard Money Loans in Durham
An outstanding buy on a fix and flip property in a very good subdivision shows up out of the blue — seems so good that it's hard to believe. Professional property flippers, like the young married couple on Flip or Flop, HGTV's reality flipping show, are capable of bringing in a profit of forty to fifty grand for the majority of homes. Of course, you also are aware that their successes are credited to the fact that they're industry experts, are well versed in hard money loans, they know market trends quite well and furthermore, they are good at working an auction to purchase their homes at a good deal. Having said that, you have also been cultivating your rehab and renovation skills, have a contractor ready to go and are positive that you can do a great job on this home.
But funding is usually a different question altogether. If you apply for a normal loan via a bank, you will end up waiting roughly 1 to 2 months until the loan is authorized and the money is readily available. Because most sellers prefer a fast closing, you might want to begin searching for additional funding options.
As well as this, for those who have a less-than-perfect credit situation or don't have a consistent source of income, it is usually harder for you to be eligible for a a bank loan, with the tougher loan requirements banks have issued in recent times. So does this mean you have no option, but to abandon your aspiration to venture into home flipping? By no means, due to the fact you can always use the Durham hard money loan approach to fund your flipping project.
A hard money home loan in Durham gives you what's considered crucial to many real estate transactions — a very fast closing of only a 2-3 weeks and at many times less. Further, loans can be done for up to 70% loan-to-value of the "as is" house value, as deemed by a professional appraiser. With the rates starting off near 10%, hard money real estate loans may seem, at first glance, to be more expensive compared to traditional bank financing. But the time frames of these loans tend to be fairly short, making the rate far less important. Short-term loans of a couple of months to a few years are best looked at in terms of cost of capital, similar to all other expenditures in connection with a project. After you fix up and sell off the home, recouping this expense is the same as recuperating the money you spent for home appliances you installed in the property.
In addition, even individuals with weak credit can still qualify for a hard money mortgage. The applicant's credit score will not be the primary deciding factor for Durham hard money lenders — in addition, they examine the piece of real estate, how much it is worth, its location, and its capacity to return their investment if everything does not work out as intended. Several other factors that affect an applicant's acceptance for a hard money real estate loan include how much money he is in a position to put into a down payment, his prior experience being a real estate investor, and selling price of similar, just recently sold homes in the neighborhood.
So should you run into a good and lucrative investment opportunity, relax knowing you'll have a hard money lender in Durham, ready to loan you the funds you need. Submit the form or get in touch with us via phone and let's discuss your property or properties.
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