Hard Money Loans in Fountain
Suppose you've run across this truly good bargain on a fix and flip property located in a great location, and you happen to be either a seasoned real estate investor or a newbie who hopes to try out flipping houses. Everyone knows that knowledgeable professional flippers, like Tarek and Christina El Moussa who do HGTV's reality flipping program, Fix or Flop, can readily earn a typical profit margin of $40,000 to $50,000 when they flip properties. Without question, their past experiences rehabbing, knowledge of hard money loans, familiarity with the market, and auction skills have had an important role in their successes. On the other hand, you're certain that your first class rehab and renovation talents will assist you to do a quality job on this property — furthermore, you've already lined up one of the best general contractors in the area to handle the project.
But capital is usually a different problem entirely. For those who go after a normal loan from the bank, you will wind up waiting roughly 1-2 months up until the time the loan is authorized and your money is ready. Given that sellers would prefer a fast closing, you might have to start searching for additional funding alternatives.
With banks establishing harder loan requirements in the past several years, it has become much harder for a self-employed individual to find a home loan, especially if his credit score is not perfect. So will a lack of funding prevent you from pursuing your aspirations? Absolutely not, given that you also have the Fountain hard money loan alternative.
Should you obtain a hard money home loan in Fountain, you have access to what is probably most essential to real estate negotiations throughout the country — a fast closing of around 14 days. Further, loan amounts are made up to 70% loan-to-value of the "as is" property value, as deemed by a qualified appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, could be seen as more costly than bank loans. But in reality, the rate of interest isn't as pertinent for these loans, since they are not long-term financing. Short-term loans of several months to a handful of years are best approached in terms of cost of capital, similar to any other expenditure associated with a project. And once you've turned the property, recovering this expense is comparable to recouping the expense for the bathroom or other improvements you did.
Furthermore, even a person with weak credit can easily be eligible for a hard money mortgage. Rather than focusing entirely on the borrower's credit score or wages, Fountain hard money lenders, who may be a privately owned company or an individual, say yes to a loan after evaluating the property value, how easy it will be to market, where it is located, and the odds of recuperating their money in the event of foreclosure. Other criteria that influence a borrower's approval for a hard money real estate loan include how much he is able to put towards a down payment, his former experience as a real estate investor, and price of similar, recently sold properties in the vicinity.
If you happen to have found a really great real estate opportunity with a high chance of returns, you've also stumbled upon a hard money lender in Fountain that is happy to fund your flipping venture. Fill out the form on this page or give us a call to discuss the property you have in mind.
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