Hard Money Loans in Friendswood
A fabulous buy on a fix and flip property in a very good area of the city all of a sudden shows up — sounds too good to be true. You've heard that professional property flippers, like the married couple on HGTV's Flip or Flop, turn a remarkable average profit close to forty to fifty thousand dollars. No need to explain that their past experiences rehabbing, knowledge of hard money loans, familiarity with the market, and auction talents have played an important part in their success. Still, your rehab and renovation skills aren't that bad either — in any case, you've already identified a suitable contractor to tackle the home.
But how can you obtain the necessary capital for home flipping? A conventional lending institution, say for example a bank, takes at least 1 to 2 months to authorize the mortgage and provide the capital. Considering that all the sellers want a fast closing, that does not appear to be a great idea to you whatsoever.
As well as this, should you have a sub-optimal credit rating or do not have a conventional source of income, it can be more challenging to obtain a bank loan, with the tougher loan guidelines banks have put in place recently. So must you admit defeat and abandon your ambition to venture off into fix and flips? Not at all, especially while Friendswood hard money loans enable you to accomplish great things in the real estate world.
When you apply for a hard money home loan in Friendswood, you have access to what's perhaps most vital to real estate negotiations throughout the country — a very fast closing of approximately 2 weeks. Also, hard money lenders frequently agree to funding up to 70% LTV of the property value, as estimated by a professional third-party evaluator. Some people believe hard money real estate loans to be higher in price than customary financing, considering interest rates of such loans commonly start out at 10%. But in reality, the lending rate isn't as pertinent for these loans, because they aren't long-term financing. When it comes to short-term loans of a few years or less, you should think about them the same as you might for every other expense for the project. And once you have sold the home, recuperating this expense is comparable to recovering the expense for the bathroom upgrades you performed.
Furthermore, even an individual with weak credit can still be eligible for a hard money mortgage. The applicant's credit score will not be the lone deciding factor for Friendswood hard money lenders — they also look at the property, what is it valued at, its location, and its capacity to bring back their investment if things should not work out as intended. How much a borrower can put down in advance towards the home, his past real estate experience, and price range of equivalent properties in the same area are additional details that go into ascertaining a person's qualification for a hard money real estate loan.
Finding a hard money lender in Friendswood to help with expenses for your fix and flip endeavor is not very hard, provided that the opportunity in front of you is promising and boasts the right potential for returns. Fill out the contact form or give us a call and let's discuss the project you have in mind.
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