Hard Money Loans in Electra
There is this amazing opportunity to rehab and flip this nice out of date property in a good area and it seems like the deal you've been wanting for quite some time. A majority of people know that knowledgeable professional flippers, like Tarek and Christina El Moussa from HGTV's reality flipping program, Fix or Flop, can earn a typical profit margin of $40,000 to $50,000 when they rehab properties. Undoubtedly, you also are aware that their results can be attributed to the fact that they are industry experts, are well versed in hard money loans, they understand market trends really well and additionally, they are good at working a public auction to buy their properties at a reasonable deal. Nevertheless, you're assured that your superb rehab and remodeling abilities will help you do a great job on the home — what's more, you already have lined up one of the premier general contractors in the business to take on the job.
But financing is often a different question altogether. For those who opt for a regular loan from the bank, you will have to wait approximately 30-60 days until the loan is authorized and the money is ready. So if you happen to be looking for a fast closing, you need to understand or know that this could cost you weeks, causing you to miss out on the house.
To add to it, banks have been tightening their lending standards in recent years, rendering it more tough for a person to get a conventional home loan if their credit score is not perfect or he doesn't have a regular salaried job. So will a lack of funds prevent you from pursuing your aspirations? Definitely not, seeing as you always have the Electra hard money loan option.
A hard money home loan in Electra can provide what's deemed essential to many real estate deals — a fast closing of only a few weeks and more often than not less. Additionally, financing is made up to 70% loan-to-value of the "as is" property's valuation, as calculated by a professional appraiser. With the loan rates starting around 10%, hard money real estate loans may appear, at first, to be more pricey as compared with traditional bank loans. But the lengths of these loans are much shorter, making the interest rate far less important. Short-term loans of a couple of months to a handful of years are best looked at in terms of cost of capital, the same as any other expense involved with a project. When you have turned the home and have made a good return, you'll be able to recoup this expense from the home — much like recovering the money necessary for the brand-new home appliances that you put in.
What's more, it is simple to be eligible for a hard money mortgage, regardless if your credit situation is not that extraordinary. The customer's credit score will not be the exclusive determining factor for Electra hard money lenders — they also examine the house, what is it valued at, where it is located, and its ability to bring back their investment if things do not go as intended. How much an applicant can put upfront towards the property or home, his past real estate experience, and selling price of equivalent homes in the same neighborhood are various other details that go into analyzing a person's suitability for a hard money real estate loan.
So if you have found a really good fixer-upper with a high probability of returns, you've also stumbled upon a hard money lender in Electra who's willing to fund your fix and flip ventures. Enter your info into the form on this page or get in touch with us via phone to talk about the property you have in mind.
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