Hard Money Loans in Falfurrias
There is this outstanding possibility for rehabbing and flipping this nice old house in a good part of town and it looks like the deal you have been expecting for quite some time. Most folks know that skilled professional flippers, such as Tarek and Christina El Moussa who do HGTV's reality home flipping show, Fix or Flop, are able to make a typical profit margin of $40,000 to $50,000 when they flip properties. And without a doubt, they are helped in a major way via their professional experience, auction skills and familiarity with hard money loans. However, you are convinced that your first class rehab and remodeling talents can help you do a great job for this property — furthermore, you have already lined up one of the finest contractors in town to work on the job.
But financing can be a different problem altogether. If you opt for a normal bank loan, you will need to wait somewhere around 4-8 weeks up until the time the money is approved and your money is accessible. So if you are looking for a fast closing, you have to understand or know that this may cost you weeks, causing you to miss out on the home.
To add to it, banks have been tightening up their lending requirements in recent years, making it difficult for people to obtain an ordinary home loan if their credit score is not flawless or he does not possess a consistent salaried occupation. So does that leave you with no option, but to abandon your dream of venturing into rehabbing? Absolutely not, seeing as you also have the Falfurrias hard money loan option.
If you decide to apply for a hard money home loan in Falfurrias, you will get what is probably most important to real estate offers across the country — a quick closing of around fourteen days. Furthermore, hard money lenders are able to do loans up to 70% LTV of the property or home's valuation, as determined by a certified third-party evaluator. With loan rates starting near 10%, hard money real estate loans might appear, at first glance, to be more costly compared to traditional bank financing. But in reality, the rate of interest isn't as useful a measure for these loans, given that they are not long-term loans. The cost of such short-term loans should be viewed on par with any other financial outlay that you would need to meet for the project. After you renovate and sell the home, recovering this expense is the same as recuperating the money you spent for new kitchen appliances you installed in the property.
Furthermore, even an individual with poor credit can easily qualify for a hard money mortgage. Falfurrias hard money lenders do not take on a loan solely judging by the customer's credit score — rather they also evaluate the property, where it is located and how much it is worth, and the home's capacity to pay back the loan without the assistance of the applicant. How much a borrower can put down in advance for the house, his real estate experience, and selling price of equivalent properties in the area are additional details that go into analyzing an applicant's eligibility for a hard money real estate loan.
So if you have found an excellent real estate opportunity with a huge potential for returns, you have also discovered a hard money lender in Falfurrias that is willing to provide financing for your flipping ventures. Submit the contact form or give us a call and let's talk about the property or properties you have in mind.
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