Hard Money Loans in Fort Oglethorpe
A fantastic deal on a fix and flip opportunity in a very good neighborhood shows up out of the blue — sounds too good to be true. Most folks know that capable professional flippers, such as Tarek and Christina El Moussa who star in HGTV's reality home flipping show, Fix or Flop, are able to make a typical profit of $40,000 to $50,000 on their flips. And without a doubt, they are helped in a big way due to their professional knowledge, auction skills and knowledge of hard money loans. On the other hand, you're assured that your impressive rehab and renovation talents will enable you to do a great job on the home — additionally, you've already lined up one of the most suggested general contractors in the business to work on this project.
But financing is usually a different issue altogether. Should you get in touch with a common lending institution, like a bank for financing, it can take, at a minimum, 30-60 days for your approval to be completed and the funds to be accessible. So if you happen to be anticipating a fast closing, you have to recognize that this could cost you a couple weeks, causing you to miss out on the sale.
To add to it, banks have already been tightening their lending standards as of late, rendering it more tough for a person to get a traditional home loan if their credit score is not flawless or he is lacking a regular salaried profession. So does this leave you with no option, but to abandon your dream to venture into the fix and flip business? By no means, particularly while Fort Oglethorpe hard money loans can help you accomplish many amazing things in real estate.
A hard money home loan in Fort Oglethorpe boasts what's perhaps most desired by real estate investors — a quick closing in as few as 14 days. Aside from that, loans can be made up to 70% loan-to-value of the as-is property value, as established by a professional appraiser. With lending rates starting around 10%, hard money real estate loans might appear, at first glance, to be more expensive in comparison with conventional bank lending products. But the term lengths for these loans are relatively shorter, making the rate much less important. Short-term loans of several months to a few years are best looked at in terms of cost of capital, the same as every other expenditure related to a project. And once you've finally turned the property, recovering this expense is comparable to recovering the expense for the bathroom or other improvements you performed.
In addition, even a person with low credit will be able to qualify for a hard money mortgage. The borrower's credit score isn't the sole determining factor for Fort Oglethorpe hard money lenders — they also look at the property, its market valuation, where it is located, and its capacity to earn back their investment if things do not work out as intended. Other variables that impact an applicant's acceptance for a hard money real estate loan can include how much money he is able to put towards a down payment, his past experience being a real estate investor, and selling price of comparative, just recently sold homes nearby.
So in case you have stumbled on a really good real estate opportunity with a huge prospect of returns, you've also discovered a hard money lender in Fort Oglethorpe that is ready to fund your flipping ventures. Complete the contact form on this page or call us to discuss the property or properties you have in mind.
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