Hard Money Loans in El Paso
Suppose you've run across this excellent deal on a fix and flip property located in a great location, and you're either a skilled real estate investor or a newbie who hopes to try his hand at flipping. You've heard that veteran house flippers, like the husband and wife on HGTV's Flip or Flop, have a remarkable average return of around $40,000 – $50,000. And sure, they are helped in a big way by their professional experience, auction abilities and familiarity with hard money loans. However, you're certain that your superb rehab and remodeling skills will enable you to do an outstanding job on this home — furthermore, you already have arranged to have one of the best contractors in the business to take on the job.
But how exactly do real estate investors find financing? Should you meet with a customary lender, like a bank for funding, it is likely going to take at least 30-60 days for the approval to come through and your money to be given out. Because most sellers give preference to a fast closing, you might need to start searching for other funding alternatives.
Furthermore, for those who have a sub-optimal credit score or don't receive a consistent income source, it is normally tougher to be eligible for a bank financing, seeing the tighter loan guidelines banks have put in place as of late. So will inadequate financing prevent you from following your dream? Certainly not, because you could always go the El Paso hard money loan route to fund your rehab project.
A hard money home loan in El Paso boasts what is probably most sought after by real estate investors — a very fast closing time of as few as two weeks. Plus, the LTV value can range up to 70% of the home value, as determined by a competent appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, appear to be more pricey than bank lending options. But usually, the lending rate isn't as useful a measure for these loans, given that they aren't long-term financing. As it pertains to short-term loans of a handful of years or even less, you should think about them just like you would other expenses for your project. Once you've sold the property and have made a positive return, you're able to get back this expense from the property or home — similar to recouping the money necessary for the brand-new appliances for the kitchen that you've installed.
In addition, even individuals with low credit will be able to qualify for a hard money mortgage. The person's credit score isn't the lone deciding factor for El Paso hard money lenders — additionally, they evaluate the house, what is it valued at, its location, and its capacity to earn back their financial commitment if things should not work out as intended. Adding to that, if the borrower have proven experience in equivalent real estate ventures, can place down cash for the down payment, and the cost of comparable houses in the area works to his benefit, he stands an excellent chance of being eligible to get a hard money real estate loan.
So if you have stumbled on a really great real estate opportunity with a huge potential for returns, you have also found yourself a hard money lender in El Paso that is happy to fund your flipping ventures. Fill out the contact form on this page or give us a call to talk about your property or properties.
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