Hard Money Loans in El Paso
You discovered this outstanding opportunity to fix and flip this nice outdated condo in a good area and it seems like the one you've been looking forward to for quite some time. You've probably heard that competent property flippers, such as the husband and wife on HGTV's Flip or Flop, turn a remarkable average profit margin of around $40,000 – $50,000. Naturally, you also recognize that their great results can be credited to the fact that they are industry experts, are well versed in hard money loans, they understand the market really well and in addition, they know how to work an auction to buy their homes at a good price. Still, your rehab and renovation knowledge isn't bad either — besides, you have already located an ideal general contractor to tackle the home.
But how can real estate investors find funding? When you meet with a common lending institution, such as a bank for a loan, it is more than likely going to take no less than 4-8 weeks for the approval to be completed and the money to be furnished. So if you're anticipating a fast closing, you have to realize that this will cost you a couple weeks, making you miss out on the opportunity.
Moreover, if you have a sub-optimal credit score or do not have a regular source of income, it can be tougher to qualify for a bank loan, considering the tighter loan guidelines banks have issued lately. So will a lack of funding stop you from sticking with your dream? Never, due to the fact you could always use the El Paso hard money loan approach to finance your flipping project.
A hard money home loan in El Paso offers you what's viewed as imperative to most real estate sales — a fast closing of only a 2-3 weeks and more often than not less. What's more, the LTV value can go up to 70% of the property's valuation, as determined by a competent appraiser. A number of people regard hard money real estate loans to be more expensive than regular financing, since the lending rates for such loans ordinarily start out at 10%. But if you appreciate that these are not long-term home loans, the rate of interest tends to be misleading. Short-term loans of several months to a handful of years are best looked at in terms of cost of capital, much like all other costs associated with a project. Once you've resold the home and have made a positive profit, you're able to reclaim this expense from the property — the same as recouping the cost of brand-new appliances for the kitchen that you've installed.
Additionally, it's simple to be eligible for a a hard money mortgage, regardless if your credit situation is not that superb. El Paso hard money lenders do not approve a loan solely based on the customer's credit score — rather they also evaluate the property or home, where it is located and what it is worth, and the property's capacity to pay back the financing by itself. The amount that a borrower can put down beforehand towards the property or home, how much experience he has in real estate investing, and price range of comparable homes in the same neighborhood are other factors that go into ascertaining a person's suitability for a hard money real estate loan.
So should you come across a very good and lucrative investment opportunity, feel comfortable knowing you'll have a hard money lender in El Paso, prepared to lend you the cash you'll need. Submit the form on this page or get in touch with us via phone to discuss your property or properties.
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