Hard Money Loans in Eunice
A remarkable buy on a fix and flip property in a nice neighborhood shows up out of the blue — seems so good that it's difficult to believe. You may have heard that competent home flippers, similar to the married couple on HGTV's Flip or Flop, turn an impressive average profit of around forty to fifty thousand dollars. It goes without saying their past experiences rehabbing, understanding of hard money loans, expertise in their housing market, and auction talents have had an important part in their results. Nonetheless, your rehab and renovation knowledge isn't bad either — aside from that, you have already found a suitable licensed contractor to take on this home.
But where can you obtain the necessary financing for home flipping? A standard lender, like for example a bank, takes a minimum of 1-2 months to consent to the mortgage and hand over the cash. So if you're expecting a fast closing, it's important to be aware that this will cost you weeks, making you lose out on the opportunity.
With banks establishing tougher loan requirements in the past several years, it is now more challenging for a self-employed person to obtain a home loan, particularly if his credit rating is not optimal. So does that leave you with no other option, but to give up your dream to venture into the fix and flip business? Under no circumstances, especially when Eunice hard money loans enable you to achieve great things in the real estate world.
If you should obtain a hard money home loan in Eunice, you have access to what is probably most important to real estate negotiations throughout the country — a very fast closing of roughly fourteen days. Additionally, loans can be done for up to 70% loan-to-value of the "as is" valuation, as determined by a professional appraiser. Some individuals regard hard money real estate loans to be higher priced than customary loans, since the interest rates of such loans generally start at 10%. But when you appreciate that these are not long-term loans, the interest rate tends to be misleading. Short-term loans of a couple months to a handful of years are best understood as cost of capital, much like every other expenditure related to a project. After you rehab and unload the house, recouping this expense is the same as recouping the one for home appliances you installed in the place.
Furthermore, even a person with poor credit can still qualify for a hard money mortgage. Instead of focusing primarily on the borrower's credit score or wages, Eunice hard money lenders, who could be a privately owned company or an individual person, approve a loan after evaluating the property value, its marketability, where it is located, and the likelihood of recouping their money in case of foreclosure. How much money a person can put down beforehand for the home, his real estate experience, and price range of comparable homes in the area are other details that go into establishing a person's eligibility for a hard money real estate loan.
So in case you have found a really great fixer-upper with a huge chance of returns, you have also discovered a hard money lender in Eunice that's happy to finance your rehab projects. Complete the contact form on this page or get in touch with us via phone to discuss the property you have in mind.
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