Hard Money Loans in Edmond
Suppose you've run across this truly good deal on a fix and flip property in a great neighborhood, and you happen to be either a seasoned real estate investor or a newbie who wants to try out flipping homes. A majority of people know that expert professional flippers, along the lines of Tarek and Christina El Moussa from HGTV's reality flipping series, Fix or Flop, can make an average profit margin of forty to fifty thousand dollars when they rehab properties. And indeed, they are helped in a big way due to their professional knowledge, auction expertise and knowledge of hard money loans. With that being said, you have likewise been developing your rehab and remodeling knowledge, have got a general contractor lined up and are confident that you can do a great job for this house.
But where precisely do real estate investors obtain financing? Should you go after a traditional bank loan, you will end up waiting roughly 1 to 2 months up until the time the money is approved and the funding is available. Because most sellers give preference to a fast closing, you may want to start seeking out additional funding options.
What's more, in case you have a sub-optimal credit rating or don't have a routine income, it can be more difficult to qualify for bank financing, seeing the tougher loan requirements banks have put in place of late. So do you have to admit defeat and forego your aspiration to embark into fix and flips? Absolutely not, given that you always have the Edmond hard money loan option.
If you decide to obtain a hard money home loan in Edmond, you will get what is possibly most essential to real estate offers throughout the country — a fast closing of roughly two weeks. Further, loans can be done for up to 70% loan-to-value of the as-is house's valuation, as calculated by a licensed appraiser. At first, hard money real estate loans, with starting lending rates of 10%, could be seen as costlier than bank lending options. But in reality, the interest rate is not as relevant for these loans, since they aren't long-term loans. Short-term loans of several months to a handful of years are best looked at as cost of capital, similar to every other expense in connection with a project. And when you've flipped the property, recouping this expense is the exact same as recuperating the expense for all the kitchen and bath updates you performed.
Moreover, even a person with bad credit will be able to be eligible for a hard money mortgage. The person's credit score is not the sole deciding factor for Edmond hard money lenders — they also examine the property, its market value, its location, and its capacity to earn back their investment if everything does not go as planned. Other variables that impact a borrower's acceptance for a hard money real estate loan include how much money he can put into a down payment, his former experience as a real estate investor, and price of comparable, fairly recently sold residences in the vicinity.
So if you have stumbled on a really great real estate opportunity with a high probability of returns, you have also discovered a hard money lender in Edmond that is happy to fund your rehab ventures. Complete the form or get in touch with us via phone to talk about your project.
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