Hard Money Loans in Fayetteville
Suppose you've run into this really great deal for a fix and flip property in a great location, and you're either a seasoned real estate investor or a first-timer who is looking to try out flipping houses. Expert home flippers, similar to the young couple on Flip or Flop, HGTV's reality flipping series, are able to earn a gain of $40-$50k on the majority of projects. Undoubtedly, you also know that their great results are attributed to the simple fact that they're industry experts, are knowledgeable in hard money loans, they understand the market really well and furthermore, they are good at working an auction to purchase their homes at a reasonable price. Having said that, you've recently been cultivating your rehab and remodeling skills, have a very good building contractor arranged and are positive that you will be able to do a great job for this home.
But capital is a different question entirely. If you go after a conventional bank loan, you will have to wait somewhere around one to two months until eventually the loan is authorized and your funding is available. So if you are looking for a fast closing, you must understand that this will cost you a couple of weeks, causing you to lose out on the sale.
Moreover, if you have an unfavorable credit score or do not have a conventional source of income, it can be tougher for you to qualify for a bank loan, with the stricter loan requirements banks have introduced lately. So do you have to give up and forego your aspiration to venture into the real estate market? Absolutely not, because you also have the Fayetteville hard money loan option.
A hard money home loan in Fayetteville gives you what's perhaps most sought after by real estate investors — a fast closing time period of as few as two weeks. And additionally, financing is made up to 70% loan-to-value of the as-is property's valuation, as deemed by a professional appraiser. At first, hard money real estate loans, with starting interest rates of 10%, seem to be costlier than bank loans. But in reality, the rate of interest isn't as useful a measure for these loans, because they are not long-term loans. When it comes to short-term loans of one or two years or even less, you should consider them similar to any other expense for the project. When you have turned the property and have made a successful return, you'll be able to get back this expense from the house — very much like recovering the money spent on the brand-new kitchen appliances that you put in.
Moreover, even someone with weak credit can still qualify for a hard money mortgage. Fayetteville hard money lenders don't approve a loan solely based on the applicant's credit score — instead they additionally evaluate the property or home, where it is located and what it is worth, and the property's ability to pay back the financing on its own. Additional factors that have an impact on a person's eligibility for a hard money real estate loan include how much he is in a position to put into a down payment, his prior experience being a real estate investor, and price range of comparable, fairly recently sold properties in the area.
So any time you come across a good and worthwhile flipping opportunity, feel comfortable knowing you will have a hard money lender in Fayetteville, able to loan you the cash you'll need. Submit the form or get in touch with us via phone and let's discuss the property or properties you have in mind.
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