Hard Money Loans in El Campo
Imagine you've run across this truly good deal on a fix and flip property you found in a terrific location, and you are either an experienced real estate investor or a first-timer who is looking to try his hand at flipping. Everybody knows that skilled professional flippers, along the lines of Tarek and Christina El Moussa who star in HGTV's reality flipping program, Fix or Flop, can readily turn an average profit of $40,000 to $50,000 when they flip properties. And indeed, they are aided in a big way via their professional know-how, auction expertise and familiarity with hard money loans. However, you are convinced that your superb rehab and remodeling knowledge will help you do a great job for this project — additionally, you've already arranged to have one of the most sought after contractors in the area to work on this job.
But where can you obtain the necessary funding for flipping? For those who get in touch with a standard lending institution, much like a bank for financing, it's more than likely going to take, at the very least, 4-8 weeks for the acceptance to be completed and the funds to be furnished. So if you will be hoping for a fast closing, it's important for you to understand or know that this could set you back by weeks, making you miss out on the opportunity.
With banks bringing in more challenging loan guidelines in recent years, it is tougher for a self-employed person to obtain a mortgage loan, especially when his credit score is not flawless. So should you admit defeat and forego your ambition to get into the real estate market? Absolutely not, seeing as you always have the El Campo hard money loan alternative.
A hard money home loan in El Campo can provide what's considered imperative to most real estate transactions — a fast closing of just a couple of weeks and more often than not even less. Further, loans can be made up to 70% loan-to-value of the "as is" house value, as deemed by a licensed appraiser. Some people regard hard money real estate loans to be higher priced than regular financing, because the lending rates for these loans normally start out at 10%. But in reality, the interest rate is not as pertinent for these loans, given that they are not long-term financing. The price of such short-term loans ought to be viewed much like every other cost that you will encounter in the course of the project. When you have sold the house and have made a successful financial gain, you can get back this expense from the property or home — very much like recovering the money spent on the brand-new appliances for the kitchen that you have installed.
Apart from this, hard money mortgages are not hard to qualify for, even in the event you have very bad credit. El Campo hard money lenders don't take on a loan solely judging by the borrower's credit score — instead they will evaluate the property or home, its valuation and location, and the property's capability to pay back the financing without the assistance of the borrower. Several other criteria that influence an individual's approval for a hard money real estate loan include how much money he can put towards a down payment, his prior experience as a real estate investor, and price of similar, just recently sold properties nearby.
Searching for a hard money lender in El Campo to help with expenses for your renovation project is not very hard, as long as the opportunity that lies before you is promising and boasts a good potential for returns. Enter your info into the contact form on this page or call us and let's discuss your property.
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