Hard Money Loans in Eagle
A remarkable bargain on a fix and flip property located in a nice subdivision all of a sudden shows up — sounds too good to be true. Many people know that skilled professional flippers, along the lines of Tarek and Christina El Moussa who star in HGTV's reality flipping show, Fix or Flop, can earn an average profit margin of forty to fifty thousand dollars on their flips. And indeed, they are aided in a big way due to their professional know-how, auction expertise and knowledge of hard money loans. Nonetheless, your rehab and renovation skills aren't that bad either — besides, you've already located a good building contractor to take on this job.
But funding is a different problem altogether. A conventional lending institution, say for example a bank, takes no less than one to two months to authorize the mortgage and release the money. Thus if you happen to be looking for a fast closing, it's important to be aware that this could set you back by a couple of weeks, making you miss out on the opportunity.
What's more, for those who have an unfavorable credit situation or don't have a regular income, it can be more difficult for you to qualify for a bank loan, seeing the more stringent loan guidelines banks have put in place lately. So do you have to give up and forego your ambition to get into fix and flips? By no means, especially while Eagle hard money loans can help you achieve great things in the real estate market.
A hard money home loan in Eagle promises what's perhaps most desired by real estate investors — a fast closing time period of as few as 2 weeks. Further, loan amounts can be done for up to 70% loan-to-value of the as-is property value, as determined by a professional appraiser. With the loan rates starting at about 10%, hard money real estate loans may look, initially, to be more pricey compared to traditional bank loans. But if you understand these are not long-term home loans, the rate of interest may be misleading. Short-term loans of a couple months to a handful of years are best thought of in terms of cost of capital, the same as every other expenditure in connection with a project. Right after you remodel and resell the home, recouping this expense is the same as recouping the expense for stainless steel appliances you put in the property.
Additionally, it's simple to be eligible for a hard money mortgage, regardless if your credit rating is not that impressive. Eagle hard money lenders do not authorize a loan exclusively based on the customer's credit score — rather they additionally evaluate the property or home, where it is located and what it is worth, and the property's capability to pay back the financing on its own. On top of this, if the person can demonstrate past experience in similar real estate endeavors, can put down money for the down payment, and the value of comparable properties in the neighborhood works in his favor, he has got a good shot of being eligible to get a hard money real estate loan.
So any time you come across an outstanding and profitable investment opportunity, feel comfortable knowing you will have a hard money lender in Eagle, ready to lend you the funds you will need. Submit the form on this page or get in touch with us via phone and let's talk about your property or properties.
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