Hard Money Loans in Fairhope
A fantastic deal on a fix and flip property in a very good subdivision shows up out of the blue — seems so good that it is difficult to believe. You've probably heard that professional home flippers, much like the married couple on HGTV's Flip or Flop, enjoy an impressive average profit close to $40,000 – $50,000. No need to explain that their past experiences rehabbing, understanding of hard money loans, expertise in their market, and auction talents have played a big part in their results. Still, your rehab and renovation skills aren't that bad either — in any case, you've already identified the right licensed contractor to take on this job.
But how can you find the needed funding for home flipping? A typical lender, say for example a bank, takes at a minimum one to two months to authorize the loan and provide the cash. Considering that the sellers are looking for a fast closing, that doesn't appear like a wise idea to you at all.
On top of this, banks have already been tightening their lending standards in recent times, which makes it hard for people to receive a typical home loan if their credit circumstances are not flawless or he doesn't have a consistent salaried job. So does that leave you with no other option, but to drop your aspiration of venturing into home flipping? Certainly not, considering that you can always use the Fairhope hard money loan approach to pay for your home flipping project.
If you obtain a hard money home loan in Fairhope, you will get what's possibly most vital to real estate transactions across the country — a fast closing of approximately two weeks. In addition, the LTV value can reach up to 70% of the property's valuation, as determined by a certified appraiser. With interest rates starting at about 10%, hard money real estate loans might seem, initially, to be more costly as compared with traditional bank financing. But if you appreciate that these are not long-term home loans, the rate tends to be misleading. When it comes to short-term loans of a handful of years or less, you should consider them identical to any kind of other expense for the project. And when you've finally turned the home, recuperating this expense is the exact same as recuperating the expense for the bathroom upgrades you performed.
Apart from this, hard money mortgages are not difficult to qualify for, even when you have below-average credit. Rather than focusing exclusively on the applicant's credit score or net income, Fairhope hard money lenders, who could be a privately owned company or an individual person, authorize a loan as a result of examining the property value, its salability, its location, and the odds of recouping their money should they have to foreclose the loan. Additional variables that affect a customer's approval for a hard money real estate loan can include how much money he can put into a down payment, his previous experience being a real estate investor, and price of similar, just recently sold homes in the neighborhood.
If you happen to have stumbled upon a really good real estate opportunity with a significant potential for returns, you have also stumbled upon a hard money lender in Fairhope who is willing to provide funding for your fix and flip projects. Fill out the form on this page or give us a call to discuss the project you have in mind.
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