Hard Money Loans in Freeport
A fabulous buy on a fix and flip opportunity in an excellent subdivision shows up out of the blue — sounds too good to be true. Everybody knows that capable professional flippers, such as Tarek and Christina El Moussa who star in HGTV's reality home flipping show, Fix or Flop, can make a typical profit margin of forty to fifty thousand dollars on their home projects. Without question, their past experiences rehabbing, understanding of hard money loans, expertise in their housing market, and auction talents have played a big role in their success. Still, your rehab and remodeling knowledge isn't that bad either — besides, you've already located a good general contractor to handle the home.
But where do you get the needed capital for home flipping? For those who go after a regular loan via a bank, you will need to wait somewhere around one to two months up until the mortgage loan is approved and the money is ready to go. So if you will be looking for a fast closing, you have to be aware that this could cost you a couple of weeks, causing you to miss out on the home.
With banks adding tougher loan requirements in the past several years, it's become harder for a self-employed person to get a mortgage loan, especially if his credit circumstances are not perfect. So should you admit defeat and forego your ambition to get into the real estate market? Certainly not, because you could always use the Freeport hard money loan approach to pay for your flipping project.
A hard money home loan in Freeport provides you with what is perhaps most important to real estate investors — a quick closing in as few as two weeks. Furthermore, hard money lenders will often consent to loans up to 70% LTV of the property or home value, as calculated by a certified third-party appraiser. A number of people believe hard money real estate loans to be more pricey than regular financing, because the interest rates for these loans ordinarily start out at 10%. But the lengths of these loans tend to be much shorter, which means the rate is far less important. Short-term loans of a couple months to a handful of years are best approached in terms of cost of capital, the same as all other costs associated with a project. And as soon as you've finally sold the house, recovering this expense is the exact same as recuperating the expense for the bathroom updates you did.
In addition, even a person with low credit can easily qualify for a hard money mortgage. The borrower's credit score isn't the primary determining factor for Freeport hard money lenders — in addition, they analyze the property, its market valuation, its location, and its capability to bring back their financial commitment if everything does not work out as planned. Several other criteria that influence an individual's approval for a hard money real estate loan include what amount of money he is in a position to put towards a down payment, his former experience being a real estate investor, and price of comparative, just recently sold properties nearby.
So should you come across a good and worthwhile investment opportunity, relax knowing you'll have a hard money lender in Freeport, in a position to loan you the cash you may need. Enter your info into the contact form on this page or call us and let's discuss the project you have in mind.
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