Hard Money Loans in Eatonton
You discovered this outstanding possibility for renovating and flipping this wonderful old home in a good part of town and it seems like the one you've been eagerly waiting on for a long time. Expert residential home flippers, such as the young married couple on Flip or Flop, HGTV's reality flipping program, are able to haul in a profit of $40-$50k on the majority of projects. And without a doubt, they are helped in a big way by their professional knowledge, auction expertise and familiarity with hard money loans. Still, your rehab and renovation knowledge isn't bad either — in any case, you have already located a good contractor to handle the job.
But how exactly do real estate investors get money? A standard lending institution, for instance a bank, takes at least 1 to 2 months to authorize the financing and deliver the capital. Thus if you are hoping for a fast closing, it's important for you to understand or know that this will cost you a couple of weeks, making you lose out on the opportunity.
Furthermore, in case you have a sub-optimal credit situation or don't receive a consistent source of income, it is normally harder for you to be eligible for bank financing, with the tighter loan guidelines banks have introduced in recent times. So does that mean you have no option, but to drop your aspiration to venture into rehabbing? By no means, due to the fact you could always use the Eatonton hard money loan approach to pay for your rehab project.
A hard money home loan in Eatonton gives you what's regarded as essential to most real estate deals — a fast closing of only a few weeks and at many times less. Plus, the LTV value can range up to 70% of the property value, as determined by a credentialed appraiser. With lending rates starting out at about 10%, hard money real estate loans may seem, at first glance, to be higher priced in comparison with traditional bank financing. But when you consider these are not long-term loans, the interest rate tends to be misleading. The price of such short-term loans should be viewed much like any other expenditure that you will have to meet for the project. Once you've turned the home and have made a successful return, you can recover this expense from the house — much like recuperating the money necessary for the brand-new home appliances that you put in.
What's more, it is simple to be eligible for a hard money mortgage, even if your credit situation is not that impressive. The applicant's credit score isn't the sole determining factor for Eatonton hard money lenders — in addition, they examine the home, its market value, where it is located, and its ability to return their financial commitment if things should not go as planned. Adding to this, if the borrower can demonstrate prior experience in equivalent real estate endeavors, can put down cash for a down payment, and the cost of similar homes in the neighborhood works in his favor, he stands a good likelihood of being approved to get a hard money real estate loan.
Locating a hard money lender in Eatonton to finance your flipping business is not hard, provided that the opportunity that lies before you is promising and boasts a strong potential for returns. Fill out the contact form or call us and let's talk about your property or properties.
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