Hard Money Loans in Elba

A remarkable deal on a fix and flip opportunity located in a good neighborhood shows up out of the blue — sounds so good that it is hard to believe. Most folks know that capable professional flippers, along the lines of Tarek and Christina El Moussa who do HGTV's reality flipping series, Fix or Flop, can make a typical profit of $40,000 to $50,000 when they flip properties. It goes without saying their rehabbing experience, knowledge of hard money loans, expertise in their market, and auction skills have had an important part in their results. On the other hand, you're convinced that your impressive rehab and renovation skills will help you do a quality job on the project — additionally, you have already arranged to have one of the premier contractors in the area to handle this job.

But where do you get the necessary capital for flipping? In the event you meet with a common lender, such as a bank for a mortgage loan, it in all likelihood will take no less than 4-8 weeks for the approval to come through and the funds to be accessible. Due to the fact all the sellers are wanting to find a fast closing, that does not appear to be a great idea to you in the slightest.

On top of this, banks have already been tightening up their lending standards in recent years, which makes it hard for people to obtain a regular loan if their credit score is not perfect or he does not possess a regular salaried profession. So will a lack of funds prevent you from following your ambitions? Certainly not, seeing as you always have the hard money loan option.

A hard money home loan in gives you what is deemed essential to most real estate sales — a fast closing of only a 2-3 weeks and at times even less. In addition, the LTV value can range up to 70% of the property's valuation, as estimated by a competent appraiser. With the interest rates starting off at about 10%, hard money real estate loans might appear, at first, to be more costly in comparison with traditional bank loans. But once you appreciate that these loans are not long-term home loans, the rate tends to be misleading. Short-term loans of a couple of months to a handful of years are best understood in terms of cost of capital, similar to all other expenses involved with a project. After you fix up and unload the property, recuperating this expense is just like recovering the cost of the stainless steel appliances you placed into the place.

Furthermore, even someone with weak credit can still be eligible for a hard money mortgage. As an alternative for focusing solely on the applicant's credit score or source of income, hard money lenders, who can be a privately owned company or an individual person, say yes to a loan after evaluating the property value, how easy it will be to market, its location, and the likelihood of recouping their capital if they have to foreclose the loan. Other factors that have an impact on a customer's eligibility for a hard money real estate loan can include the amount he is able to put into a down payment, his former experience as a real estate investor, and price of comparative, recently sold residences nearby.

Searching for a hard money lender in to finance your real estate project is not very challenging, so long as the opportunity in front of you is promising and possesses the right prospect for returns. Enter your info into the contact form on this page or give us a call to talk about the property you have in mind.

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Investment property loans only please, no primary residences at this time.