Hard Money Loans in Fountain Hill
Suppose that you've stumbled upon this really great bargain for a fix and flip property in a great location, and you're either a seasoned real estate investor or a newbie who is looking to try out flipping houses. You may have heard that veteran home flippers, like the couple on HGTV's Flip or Flop, have a remarkable average profit margin near $40,000 – $50,000. And without a doubt, they are aided in a major way as a result of their professional experience, auction expertise and familiarity with hard money loans. Still, your rehab and remodeling knowledge isn't that bad either — besides, you have already found a good general contractor to take on the project.
But how can you obtain the necessary financing for home flipping? For those who meet with a regular lender, such as a bank for a mortgage loan, it is more than likely going to take no less than 30-60 days for your acceptance to come through and the funds to be sent out. So if you will be wishing for a fast closing, it's important to recognize that this may set you back by a couple weeks, making you miss out on the home.
Moreover, if you have a less-than-perfect credit rating or do not receive a consistent income source, it can be harder to qualify for bank financing, with the stricter loan criteria banks have introduced as of late. So will a shortage of financing prevent you from pursuing your aspirations? Most certainly not, because you always have the Fountain Hill hard money loan option.
A hard money home loan in Fountain Hill offers what's deemed imperative to most real estate sales — a quick closing of only a 2-3 weeks and at many times even less. Plus, the LTV value can reach up to 70% of the property's valuation, as determined by a credentialed appraiser. Some individuals consider hard money real estate loans to be costlier than regular financing, because the interest rates of such loans typically start off at 10%. But once you appreciate that these loans are not long-term home loans, the interest rate can be misleading. When it comes to short-term loans of several years or even less, you should consider them the same as you might for any other expense for your project. Right after you remodel and sell off the property, recovering this expense is the same as recouping the money you spent for home appliances you put in the place.
Additionally, it's simple to be eligible for a a hard money mortgage, regardless of whether your credit score is not that extraordinary. Fountain Hill hard money lenders don't take on a loan solely judging by the person's credit score — rather they will evaluate the home, its location and value, and the property's capability to pay back the financing independent of the borrower. Several other variables that have an impact on a customer's eligibility for a hard money real estate loan can include how much he can put into a down payment, his former experience as a real estate investor, and selling price of similar, recently sold homes in the vicinity.
Finding a hard money lender in Fountain Hill to help with expenses for your real estate project is not difficult, provided that the opportunity before you is promising and has the right potential for returns. Complete the contact form on this page or get in touch with us via phone to talk about your property or properties.
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