Hard Money Loans in Friona
An outstanding bargain on a fix and flip property located in a good neighborhood suddenly turns up — seems too good to be true. You've heard that professional house flippers, similar to the husband and wife on HGTV's Flip or Flop, enjoy a remarkable average profit margin of around $40,000 – $50,000. No need to explain that their rehabbing experience, knowledge of hard money loans, familiarity with the housing market, and auction skills have been large factors to their results. On the other hand, you're certain that your first class rehab and remodeling talents can help you do a great job on the property — in addition, you already have lined up one of the most sought after contractors in town to take on this project.
But capital is often a different problem altogether. A traditional lending institution, say for example a bank, takes no less than 1-2 months to approve the loan and provide the cash. Thus if you are wishing for a fast closing, you must recognize that this may cost you a few weeks, making you lose out on the opportunity.
With banks adding tougher loan standards in the recent past, it has become more challenging for a self-employed person to get a mortgage loan, especially if his credit situation is not flawless. So must you give up and forego your dream to venture into the real estate market? By no means, especially while Friona hard money loans enable you to realize many amazing things in the real estate market.
A hard money home loan in Friona gives you what's perhaps most important to real estate investors — a quick closing time period of as few as two weeks. Plus, the LTV value can go up to 70% of the property's valuation, as determined by a competent appraiser. With loan rates starting off at about 10%, hard money real estate loans may appear, initially, to be higher priced as compared with conventional bank loans. But in reality, the interest rate isn't as pertinent for these loans, given that they aren't long-term financing. The cost of such short-term loans ought to be considered much like every other financial outlay that you will encounter during the project. Once you have turned the property and have made a successful return, you'll be able to reclaim this expense from the property or home — just like recovering the cost of brand-new kitchen appliances that you've installed.
Also, it's simple to be eligible for a hard money mortgage, even if your credit rating is not that impressive. As an alternative for focusing primarily on the person's credit score or wages, Friona hard money lenders, who may be a privately owned company or an individual, authorize a loan as a result of assessing the property value, how easy it will be to market, where it is located, and the possibility of recouping their money in case they have to foreclose the loan. How much of their own money a borrower can put upfront towards the house, how much practical experience he has in real estate investing, and selling price of comparative properties in the same neighborhood are other details that go into establishing an individual's eligibility for a hard money real estate loan.
Searching for a hard money lender in Friona to fund your renovation project is not very challenging, so long as the opportunity that lies before you is promising and boasts the right potential for returns. Complete the contact form on this page or get in touch with us via phone and let's discuss your property or properties.
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