Hard Money Loans in Freeport
Suppose you've run across this really great deal for a fix and flip property in an ideal neighborhood, and you are either a seasoned real estate investor or a first-timer who wants to try his hand at flipping. Many people know that capable professional flippers, like Tarek and Christina El Moussa who do HGTV's reality flipping series, Fix or Flop, are able to make an average profit margin of $40,000 to $50,000 on their home projects. And indeed, they are aided in a major way via their professional know-how, auction abilities and knowledge of hard money loans. Nonetheless, your rehab and remodeling skills aren't bad either — in any case, you have already identified an ideal building contractor to handle this job.
But how do you obtain the necessary capital for home flipping? A traditional lender, for instance a bank, takes at least 1-2 months to approve the loan and hand over the cash. So if you will be looking for a fast closing, you must understand that this could set you back by a couple of weeks, making you lose out on the house.
To add to it, banks have been tightening up their lending criteria as of late, which makes it challenging for people to receive a traditional loan if their credit situation is not flawless or he does not possess a regular salaried occupation. So does that mean you have no option, but to give up your aspiration of getting into home flipping? Most certainly not, because you always have the Freeport hard money loan option.
If you should put in an application for a hard money home loan in Freeport, you'll get what is possibly most important to real estate negotiations across the country — a fast closing of about a couple weeks. Further, financing can be made up to 70% loan-to-value of the "as is" house value, as determined by a professional appraiser. With rates starting at about 10%, hard money real estate loans may appear, at first, to be more pricey when compared with conventional bank loans. But the term lengths for these loans are quite short, making the rate less significant. When it comes to short-term loans of several years or even less, you should consider them just like you would other expenses for the project. Right after you rehab and sell the home, recouping this expense is just like recuperating the expense for new kitchen appliances you installed in the home.
Furthermore, even an individual with poor credit will be able to be eligible for a hard money mortgage. Freeport hard money lenders don't take on a loan strictly according to the borrower's credit score — rather they will examine the home, where it is located and how much it is worth, and the property's ability to pay back the financing independent of the borrower. The total amount that a borrower can put upfront towards the property or home, how much experience he has in real estate investments, and selling price of comparable homes in the same area are additional details that go into ascertaining an individual's qualification for a hard money real estate loan.
So in case you have stumbled upon a really great real estate opportunity with a huge chance of returns, you've also found yourself a hard money lender in Freeport that is happy to provide financing for your rehab projects. Complete the form on this page or get in touch with us via phone and let's discuss your project.
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