Hard Money Loans in El Lago
There is this phenomenal opportunity to fix and flip this nice old home in a fantastic location and it looks a lot like the one you have been eagerly waiting on for a long time. You've heard that professional house flippers, such as the husband and wife on HGTV's Flip or Flop, have an impressive average profit close to forty to fifty thousand dollars. It's fair to say their past experiences rehabbing, understanding of hard money loans, expertise in their housing market, and auction skills have had a significant role in their results. Still, your rehab and renovation skills aren't that bad either — besides, you've already identified the right building contractor to handle this home.
But where precisely do real estate investors find funding? If you apply for a normal loan from the bank, you will wind up waiting around roughly 30-60 days up until the time the financing is authorized and your money is readily available. Due to the fact the sellers are wanting to find a fast closing, that doesn't appear like a wise idea to you in the slightest.
What's more, if you have an unfavorable credit score or do not have a regular source of income, it can be tougher to be eligible for bank financing, seeing the more stringent loan requirements banks have put in place of late. So must you stop trying and forego your ambition to embark into real estate? By no means, because you can always use the El Lago hard money loan approach to fund your home flipping project.
A hard money home loan in El Lago gives you what is possibly most crucial to real estate investors — a quick closing time period of as little as two weeks. Plus, the LTV value can go up to 70% of the property value, as evaluated by a competent appraiser. At first, hard money real estate loans, with starting interest rates of 10%, seem to be more costly than bank financing. But in reality, the rate of interest is not as relevant for these loans, since they aren't long-term loans. As it pertains to short-term loans of a few years or less, you should think about them the same as you might for any other expense for your project. And once you've turned the property or home, recouping this expense is identical to recuperating the expense for the kitchen and bath improvements you did.
What's more, it is easy to qualify for a hard money mortgage, even if your credit score is not that extraordinary. El Lago hard money lenders do not approve a loan strictly according to the applicant's credit score — instead they also look at the home, where it is located and what it is worth, and the home's capability to pay back the financing on its own. How much of their own money an individual can put upfront for the house, his real estate experience, and selling price of comparable properties in the vicinity are additional factors that go into ascertaining an individual's suitability for a hard money real estate loan.
So any time you run into a really good and lucrative investment opportunity, relax knowing you will have a hard money lender in El Lago, prepared to loan you the capital you'll need. Submit the form on this page or call us and let's talk about your property.
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