Hard Money Loans in Economy
An incredible deal on a fix and flip opportunity located in a very good subdivision all of a sudden shows up — seems so good that it's difficult to believe. Expert property flippers, such as the young couple on Flip or Flop, HGTV's reality flipping program, are able to earn a profit of $40-$50k for most homes. And sure, they are aided in a big way by their professional experience, auction expertise and familiarity with hard money loans. However, you're convinced that your impressive rehab and remodeling skills will help you do a quality job on the home — additionally, you've already lined up one of the premier general contractors in town to take care of this project.
But financing is often a separate problem altogether. If you go after a traditional loan from the bank, you will need to wait around somewhere around 30-60 days until eventually the mortgage is approved and the funding is accessible. Since the majority of home owners wish to have a fast closing, you might want to start looking for some other funding alternatives.
On top of this, banks have already been tightening up their lending requirements in recent years, making it hard for people to receive a regular home loan if their credit situation is not perfect or he is lacking a regular salaried profession. So will inadequate funding stop you from pursuing your ambitions? Not at all, particularly while Economy hard money loans enable you to accomplish great things in the real estate world.
Should you opt for a hard money home loan in Economy, you'll get what is perhaps most important to real estate purchases across the country — a quick closing of about 2 weeks. Additionally, financing can be made up to 70% loan-to-value of the as-is property value, as determined by a licensed appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, appear to be more expensive than bank loans. But once you consider these loans are not long-term loans, the rate of interest tends to be misleading. When it comes to short-term loans of 1 or 2 years or less, you should think about them identical to any kind of other expenditure for your project. After you remodel and unload the house, recuperating this expense is the same as recouping the expense for home appliances you put in the place.
Also, it's simple to qualify for a hard money mortgage, regardless if your credit rating is not that extraordinary. Economy hard money lenders do not take on a loan solely judging by the applicant's credit score — instead they also assess the property, its valuation and location, and the home's capacity to pay back the financing independent of the borrower. Other factors that influence an applicant's approval for a hard money real estate loan include how much he is able to put towards a down payment, his previous experience as a real estate investor, and selling price of comparative, recently sold properties in the area.
If you happen to have stumbled upon a really great real estate opportunity with a significant prospect of returns, you have also found yourself a hard money lender in Economy that is happy to finance your fix and flip project. Submit the form or give us a call to discuss the property or properties you have in mind.
A loan specialist will be in touch shortly