Hard Money Loans in Eastland
You discovered this amazing opportunity to rehab and flip this wonderful out of date property or home in a good area and it seems like the one you have been looking forward to for quite some time. Many people know that skilled professional flippers, such as Tarek and Christina El Moussa who do HGTV's reality home flipping series, Fix or Flop, are able to earn an average profit margin of forty to fifty thousand dollars in their rehab business. And indeed, they are aided in a big way by their professional knowledge, auction skills and familiarity with hard money loans. That said, you've likewise been cultivating your rehab and remodeling skills, have got a general contractor ready for the project and are certain that you're capable of doing a great job on this house.
But how do you get the necessary funding for home flipping? A traditional lending institution, like for example a bank, takes at the very least one to two months to consent to the mortgage and hand over the monies. With all the home owners seeking a fast closing, that doesn't appear like a good option to you at all.
With banks establishing tougher loan guidelines in recent years, it's become tougher for a self-employed person to find a mortgage loan, especially if his credit rating is not optimal. So must you stop trying and abandon your ambition to get into fix and flips? Never, due to the fact you can always go the Eastland hard money loan route to finance your flipping project.
A hard money home loan in Eastland provides what is deemed vital to many real estate transactions — a very fast closing of just a couple of weeks and at many times less. In addition, the LTV value can go up to 70% of the property's valuation, as evaluated by a credentialed appraiser. On the surface, hard money real estate loans, with starting lending rates of 10%, appear to be higher priced than bank lending options. But usually, the rate of interest is not as pertinent for these loans, simply because they are not long-term financing. When it comes to short-term loans of one or two years or even less, you should think of them much like you would other expenditures for your project. And when you've turned the house, recovering this expense is comparable to recovering the expense for the kitchen and bath updates you performed.
Besides, hard money mortgages are easy qualifying, regardless if you have got below-average credit. Rather than focusing strictly on the borrower's credit score or source of income, Eastland hard money lenders, who can be a private company or an individual, authorize a loan after examining the property value, ease of marketability, where it is located, and the likelihood of recouping their money should they have to foreclose the loan. On top of that, if the person can demonstrate prior experience in equivalent real estate projects, can place down money towards the down payment, and the value of similar homes in the area works in his favor, he stands a good chance of being approved for a hard money real estate loan.
Locating a hard money lender in Eastland to fund your fix and flip endeavor is not hard, as long as the opportunity that lies ahead of you is promising and offers a good potential for returns. Enter your info into the form or give us a call and let's talk about the project you have in mind.
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