Hard Money Loans in Fort Valley
There is this phenomenal opportunity to rehab and flip this nice out of date home in a fantastic location and it seems like the one you've been eagerly waiting on for quite some time. Many people know that expert professional flippers, such as Tarek and Christina El Moussa who star in HGTV's reality home flipping show, Fix or Flop, can readily generate a typical profit margin of $40,000 to $50,000 in their rehab business. And without a doubt, they are aided in a major way by their professional experience, auction abilities and knowledge of hard money loans. Having said that, you have recently been cultivating your rehab and renovation knowledge, have a very good general contractor lined up and are positive that you can do a stellar job on this property.
But money can be a different problem altogether. In the event you approach a standard lender, much like a bank for a mortgage loan, it in all likelihood will take at least thirty to sixty days for the acceptance to come through and the funds to be distributed. So if you're anticipating a fast closing, it is important to understand or know that this may cost you a few weeks, making you miss out on the sale.
What's more, if you have a sub-optimal credit score or don't have a routine source of income, it is normally more difficult to obtain bank financing, considering the more stringent loan guidelines banks have put in place of late. So will a lack of funds prevent you from sticking with your dream? Under no circumstances, especially while Fort Valley hard money loans enable you to realize great things in the real estate market.
A hard money home loan in Fort Valley provides what's considered vital to most real estate deals — a fast closing of just a 2-3 weeks and oftentimes even less. Aside from that, financing can be done for up to 70% loan-to-value of the "as is" property value, as established by a licensed appraiser. Some people consider hard money real estate loans to be higher priced than ordinary financing, considering interest rates for these loans ordinarily start at 10%. But the term lengths for these loans are fairly short, which means the interest rate is less important. Short-term loans of a couple months to a handful of years are best approached as cost of capital, very much like any other financial outlay associated with a project. And when you've sold the property, recovering this expense is identical to recovering the expense for all the bathroom updates you did.
Additionally, it isn't difficult to be eligible for a a hard money mortgage, regardless if your credit rating is not that great. The borrower's credit score isn't the exclusive determining factor for Fort Valley hard money lenders — in addition, they analyze the home, how much it is worth, where it is located, and its potential to bring back their investment if everything does not work out as planned. Adding to this, if the applicant can demonstrate prior experience in similar real estate endeavors, can place down cash for the down payment, and the cost of equivalent homes in the area works to his benefit, he has got an excellent chance of being approved for a hard money real estate loan.
So if you have found a really good fixer-upper with a huge probability of returns, you have also stumbled upon a hard money lender in Fort Valley that is willing to provide financing for your flipping projects. Submit the contact form or get in touch with us via phone to talk about your property or properties.
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