Hard Money Loans in Fairburn
An incredible bargain on a fix and flip opportunity located in a good area of the city shows up out of the blue — seems so good that it is difficult to believe. You've heard that veteran house flippers, such as the couple on HGTV's Flip or Flop, have a remarkable average profit of around $40,000 – $50,000. And without a doubt, they are helped in a major way via their professional experience, auction expertise and understanding of hard money loans. That said, you've also been brushing up your rehab and renovation knowledge, have a contractor ready to go and are positive that you will be able to do a great job on this home.
But where can you find the needed funding for flipping? A traditional lender, like for example a bank, takes at a minimum one to two months to consent to the mortgage and release the money. Since the majority of sellers would rather have a fast closing, you might need to begin looking for additional financing options.
With banks bringing in more challenging loan standards in the past few years, it has become more difficult for a self-employed individual to find a home loan, especially if his credit score is not flawless. So will a lack of financing prevent you from pursuing your ambitions? By no means, on the grounds that you could always use the Fairburn hard money loan approach to fund your home flipping project.
A hard money home loan in Fairburn gives you what's viewed as vital to most real estate transactions — a fast closing of just a couple of weeks and more often than not even less. Plus, the LTV value can go up to 70% of the home value, as estimated by a certified appraiser. With the interest rates starting at about 10%, hard money real estate loans might seem, initially, to be more costly when compared with traditional bank loans. But in reality, the interest rate is not as relevant for these loans, since they are not long-term loans. When it comes to short-term loans of several years or less, you should think of them much like you would other expenses for your project. When you have turned the property or home and have made a positive return, you can recover this expense from the property — very much like recovering the cost of brand-new kitchen appliances that you have put in.
Additionally, it's easy to be eligible for a hard money mortgage, regardless if your credit score is not that great. The customer's credit score isn't the primary deciding factor for Fairburn hard money lenders — they also analyze the house, how much it is worth, its location, and its potential to earn back their investment if everything does not go as intended. How much an individual can put down in advance towards the property, how much practical experience he has in real estate investing, and selling price of equivalent homes in the same neighborhood are various other factors that go into establishing an individual's suitability for a hard money real estate loan.
Finding a hard money lender in Fairburn to cover expenses for your fix and flip endeavor is not very challenging, provided that the opportunity before you is promising and boasts the right prospect for returns. Fill out the form on this page or give us a call and let's discuss the property or properties you have in mind.
A loan specialist will be in touch shortly