Hard Money Loans in Fredericksburg
You discovered this amazing opportunity to rehab and flip this wonderful old condo in a good location and it looks like the deal you've been looking forward to for a long time. You may have heard that veteran property flippers, like the couple on HGTV's Flip or Flop, have a remarkable average profit margin near $40,000 – $50,000. It goes without saying their past experiences rehabbing, understanding of hard money loans, familiarity with the market, and auction skills have played an important part in their success. Nevertheless, you are certain that your impressive rehab and renovation abilities will assist you to do an outstanding job for this house — what's more, you already have arranged to have one of the most recommended contractors in the business to handle the project.
But how do real estate investors obtain financing? For those who approach a regular lender, much like a bank for a mortgage loan, it very likely will take a minimum of 30-60 days for your approval to be completed and the money to be distributed. Given that home owners would rather have a fast closing, you might want to begin searching for other financing alternatives.
To add to it, banks have already been tightening up their lending requirements as of late, which makes it tough for someone to receive an ordinary loan if their credit circumstances are not flawless or he doesn't have a consistent salaried occupation. So should you admit defeat and abandon your aspiration to get into real estate? Definitely not, seeing as you always have the Fredericksburg hard money loan alternative.
A hard money home loan in Fredericksburg gives you what's perhaps most essential to real estate investors — a fast closing time period of as little as fourteen days. Aside from that, loans are made up to 70% loan-to-value of the as-is house's valuation, as calculated by a professional appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, appear to be higher priced than bank lending products. But the term lengths for these loans are much shorter, which means the rate is less significant. Short-term loans of a couple of months to a handful of years are best looked at as cost of capital, the same as any other financial outlay in connection with a project. And once you have finally turned the property or home, recuperating this expense is the exact same as recuperating the expense for the bathroom or other upgrades you performed.
In addition, even a person with poor credit can easily be eligible for a hard money mortgage. The customer's credit score will not be the single deciding factor for Fredericksburg hard money lenders — they also look at the home, how much it is worth, its location, and its ability to return their financial commitment if everything does not go as planned. The total amount that an applicant can put upfront for the home, how much practical experience he has in real estate investments, and selling price of equivalent homes in the area are various other details that go into analyzing an individual's suitability for a hard money real estate loan.
Locating a hard money lender in Fredericksburg to fund your flipping business is not hard, as long as the opportunity in front of you is promising and has the right prospect for returns. Enter your info into the form or call us and let's discuss the property you have in mind.
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