Hard Money Loans in Fairfield
Imagine you've run into this excellent deal on a fix and flip property you found in a terrific location, and you're either a seasoned real estate investor or a newbie who really wants to try out flipping houses. Everybody knows that knowledgeable professional flippers, such as Tarek and Christina El Moussa who do HGTV's reality flipping show, Fix or Flop, are able to make a typical profit margin of forty to fifty thousand dollars on their flips. And sure, they are helped in a big way by their professional experience, auction skills and knowledge of hard money loans. With that being said, you've also been developing your rehab and renovation skills, have a general contractor ready to go and are positive that you will be able to do a stellar job on this house.
But where can you find the needed capital for home flipping? When you apply for a traditional bank loan, you will need to wait around somewhere around 1-2 months up until the time the mortgage loan is authorized and your money is readily available. Since most sellers would prefer a fast closing, you may have to begin seeking out some other funding alternatives.
Furthermore, for those who have a sub-optimal credit score or do not receive a regular income, it is usually more challenging for you to qualify for a bank loan, seeing the stricter loan guidelines banks have issued recently. So will inadequate financing stop you from sticking with your dream? Certainly not, because you always have the Fairfield hard money loan option.
A hard money home loan in Fairfield offers you what's viewed as crucial to many real estate transactions — a fast closing of only a couple of weeks and at times less. Furthermore, hard money lenders will often consent to lending up to 70% LTV of the home's valuation, as calculated by a credentialed third-party evaluation. With rates starting out at about 10%, hard money real estate loans may seem, initially, to be higher in price as compared with traditional bank lending products. But the lengths of these loans are quite short, which makes the interest rate far less significant. Short-term loans of several months to a handful of years are best approached in terms of cost of capital, much like all other expenses associated with a project. Once you have resold the house and have made a successful financial gain, you can reclaim this expense from the house — just like recovering the money spent on the brand-new kitchen appliances that you have put in.
Apart from this, hard money mortgages are easy qualifying, regardless if you have very bad credit. Fairfield hard money lenders do not approve a loan strictly judging by the customer's credit score — instead they additionally look at the property or home, its location and value, and the property's capacity to pay back the loan by itself. Other factors that affect a customer's acceptance for a hard money real estate loan can include how much money he is able to put into a down payment, his prior experience being a real estate investor, and price of similar, recently sold properties nearby.
So if you have found a really great fixer-upper with a huge probability of returns, you have also found yourself a hard money lender in Fairfield who's prepared to fund your flipping venture. Fill out the contact form or call us to discuss the property or properties you have in mind.
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