Hard Money Loans in Fort Stockton
Suppose that you've encountered this really great deal for a fix and flip property in an ideal neighborhood, and you happen to be either a skilled real estate investor or a newbie who is looking to try out flipping houses. You've probably heard that veteran property flippers, much like the couple on HGTV's Flip or Flop, turn an impressive average profit close to forty to fifty thousand dollars. It's fair to say their rehabbing experience, understanding of hard money loans, expertise in their market, and auction talents have played a significant role in their success. That said, you have also been brushing up your rehab and remodeling knowledge, have a very good building contractor ready to go and are certain that you can do a stellar job on this property.
But where precisely can real estate investors find funds? If you go after an ordinary loan from the bank, you will end up waiting somewhere around 1-2 months until eventually the mortgage is authorized and your funds are ready. With all the home owners looking for a fast closing, that does not seem like a good option to you whatsoever.
To add to it, banks have been tightening up their lending standards in recent times, making it tough for someone to get a traditional loan if their credit score is not perfect or he does not have a consistent salaried occupation. So does this leave you with no option, but to drop your aspiration to venture into rehabbing? Absolutely not, because you always have the Fort Stockton hard money loan option.
If you should opt for a hard money home loan in Fort Stockton, you will get what's perhaps most essential to real estate transactions across the country — a fast closing of around fourteen days. Additionally, financing can be done for up to 70% loan-to-value of the as-is house value, as established by a qualified appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, could be seen as costlier than bank financing. But usually, the interest rate isn't as relevant for these loans, because they aren't long-term financing. Short-term loans of a couple of months to a handful of years are best approached as cost of capital, the same as all other expenses in connection with a project. Once you've turned the property and have made a good profit, you'll be able to get back this expense from the property or home — similar to recouping the money spent on the brand-new home appliances that you installed.
Besides, hard money mortgages are easy qualifying, even if you posses a low credit score. The applicant's credit score isn't the lone deciding factor for Fort Stockton hard money lenders — they also examine the home, what is it valued at, its location, and its capability to return their investment if things do not go as intended. Other criteria that impact a customer's approval for a hard money real estate loan can include how much money he is in a position to put into a down payment, his previous experience being a real estate investor, and selling price of similar, just recently sold residences in the neighborhood.
If you happen to have found an excellent fixer-upper with a huge potential for returns, you've also discovered a hard money lender in Fort Stockton that is willing to provide financing for your rehab ventures. Fill out the form on this page or give us a call to talk about the property you have in mind.
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