Hard Money Loans in Edna
Suppose you've come across this excellent deal on a fix and flip property located in a terrific location, and you happen to be either a seasoned real estate investor or a first-timer who is looking to try out flipping houses. You may have heard that competent property flippers, much like the husband and wife on HGTV's Flip or Flop, have an impressive average profit margin of around forty to fifty thousand dollars. It's fair to say their past experiences rehabbing, understanding of hard money loans, expertise in their market, and auction skills have played an important part in their success. Having said that, you've also been brushing up your rehab and renovation knowledge, have a licensed contractor ready to go and are confident that you will be able to do a bang up job on this property.
But where can real estate investors find capital? A standard lending institution, like for example a bank, takes no less than 1 to 2 months to consent to the loan and deliver the funds. Since most sellers would prefer a fast closing, you might want to start seeking out some other funding options.
With banks introducing harder loan standards in recent years, it is more difficult for a self-employed person to obtain a home loan, especially when his credit circumstances are not optimal. So do you have to admit defeat and abandon your desire to venture into real estate? Under no circumstances, particularly when Edna hard money loans can help you achieve many amazing things in real estate.
A hard money home loan in Edna boasts what's perhaps most sought after by real estate investors — a very fast closing time of as few as two weeks. Besides that, hard money lenders frequently agree to loans up to 70% LTV of the property or home's valuation, as calculated by a credentialed third-party evaluator. A number of people consider hard money real estate loans to be more pricey than standard loans, since the interest rates for these loans generally start off at 10%. But usually, the rate of interest isn't as relevant for these loans, because they will never be long-term loans. When it comes to short-term loans of a handful of years or less, you should think about them similar to any other expense for your project. Once you have turned the property or home and have made a good profit, you can recover this expense from the property — very much like recovering the cost of brand-new home appliances that you've put in.
Besides, hard money mortgages are easy qualifying, regardless if you have got a low credit score. Edna hard money lenders don't authorize a loan strictly according to the person's credit score — instead they additionally look at the property or home, its value and location, and the property's ability to pay back the loan independent of the applicant. On top of that, if the borrower can demonstrate prior experience in equivalent real estate endeavors, can place down cash for a down payment, and the value of similar properties in the neighborhood works in his favor, he has a good chance of being approved to get a hard money real estate loan.
So any time you run into a very good and profitable investment opportunity, feel comfortable knowing you'll have a hard money lender in Edna, equipped to lend you the funds you need. Fill out the form on this page or call us to talk about the property or properties you have in mind.
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