Hard Money Loans in Foley
A fantastic buy on a fix and flip opportunity located in a nice neighborhood all of a sudden shows up — sounds too good to be true. Everyone knows that knowledgeable professional flippers, like Tarek and Christina El Moussa who do HGTV's reality flipping show, Fix or Flop, can readily turn an average profit of $40,000 to $50,000 in their rehab business. And yes, they are helped in a major way by their professional knowledge, auction expertise and familiarity with hard money loans. Nonetheless, your rehab and renovation knowledge isn't that bad either — aside from that, you've already found the right general contractor to handle the project.
But how can you obtain the necessary financing for flipping? When you apply for a conventional loan via a bank, you will wind up waiting around approximately 1-2 months before the mortgage loan is approved and your funding is readily available. Given that home owners wish to have a fast closing, it may be best to start searching for additional funding alternatives.
As well as this, if you have an unfavorable credit score or do not have a consistent source of income, it is usually tougher for you to obtain a bank loan, considering the tighter loan requirements banks have put in place recently. So does this leave you with no option, but to drop your ambition of getting into rehabbing? Not at all, especially when Foley hard money loans will assist you to accomplish great things in the real estate market.
A hard money home loan in Foley provides you with what is perhaps most important to real estate investors — a fast closing in as little as a few weeks. Also, hard money lenders will often consent to lending up to 70% LTV of the property or home's valuation, as established by a credentialed third-party evaluation. With rates starting out around 10%, hard money real estate loans may look, at first glance, to be more costly in comparison with conventional bank lending products. But in reality, the rate of interest is not as relevant for these loans, because they aren't long-term financing. The price tag on such short-term loans ought to be evaluated much like every other expenditure that you would need to meet pertaining to the project. Once you've sold the property or home and have made a positive return, you're able to get back this expense from the house — similar to recovering the money necessary for the brand-new kitchen appliances that you've put in.
Furthermore, even an individual with bad credit can still qualify for a hard money mortgage. Rather than focusing strictly on the applicant's credit score or wages, Foley hard money lenders, who can be a privately owned company or an individual person, say yes to a loan after assessing the home value, its marketability, its location, and the odds of getting back their capital in case of foreclosure. Adding to this, if the borrower can demonstrate past experience in similar real estate ventures, can put down money towards the down payment, and the cost of comparative properties in the neighborhood works in his favor, he stands a very good likelihood of being approved to get a hard money real estate loan.
So if you have stumbled upon an excellent real estate opportunity with a huge potential for returns, you've also discovered a hard money lender in Foley that's ready to provide funding for your fix and flip venture. Complete the contact form on this page or call us to talk about your project.
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