Hard Money Loans in Fairview
Suppose that you've encountered this truly good deal for a fix and flip property you found in a great location, and you happen to be either an experienced real estate investor or a first-timer who hopes to try out flipping houses. You may have heard that veteran house flippers, like the husband and wife on HGTV's Flip or Flop, have a remarkable average profit of around $40,000 – $50,000. It goes without saying their past experiences rehabbing, knowledge of hard money loans, familiarity with the housing market, and auction talents have played a significant part in their success. Nonetheless, your rehab and remodeling knowledge isn't that bad either — aside from that, you've already located a suitable general contractor to take on the project.
But funding is usually a separate issue altogether. For those who apply for a regular loan via a bank, you will have to wait around approximately 1-2 months up until the time the loan is approved and your money is ready to go. So if you will be wishing for a fast closing, you need to understand that this could cost you weeks, causing you to lose out on the opportunity.
Furthermore, for those who have an unfavorable credit rating or do not receive a routine income, it is normally more difficult to qualify for bank financing, with the tougher loan requirements banks have introduced in recent times. So will inadequate funds stop you from sticking with your aspirations? By no means, especially while Fairview hard money loans enable you to accomplish great things in real estate.
A hard money home loan in Fairview provides what's considered vital to many real estate transactions — a quick closing of only a 2-3 weeks and oftentimes less. And additionally, financing can be made up to 70% loan-to-value of the "as is" house value, as determined by a qualified appraiser. With the interest rates starting near 10%, hard money real estate loans may look, at first glance, to be more costly when compared with conventional bank loans. But in reality, the interest rate is not as useful a measure for these loans, since they will never be long-term financing. The cost of such short-term loans ought to be evaluated on par with every other financial outlay that you might encounter during the project. After you fix up and unload the home, recovering this expense is just like recouping the cost of the stainless steel appliances you put in the home.
Furthermore, even individuals with bad credit can still be eligible for a hard money mortgage. Rather than focusing solely on the person's credit score or source of income, Fairview hard money lenders, who may be a private company or an individual, authorize a loan after evaluating the property value, how easy it will be to market, its location, and the probability of recouping their money in the event of foreclosure. Several other factors that have an impact on a borrower's acceptance for a hard money real estate loan include how much he is able to put towards a down payment, his former experience as a real estate investor, and price of similar, recently sold homes nearby.
So if you have stumbled on an excellent real estate opportunity with a high chance of returns, you have also discovered a hard money lender in Fairview that is prepared to provide financing for your fix and flip project. Submit the form on this page or call us to discuss your property or properties.
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