Hard Money Loans in Gallup
Suppose you've stumbled upon this really great bargain for a fix and flip property located in an ideal neighborhood, and you are either a skilled real estate investor or a newbie who hopes to try out flipping homes. You've probably heard that veteran home flippers, similar to the married couple on HGTV's Flip or Flop, have an impressive average return close to forty to fifty thousand dollars. No need to explain that their past experiences rehabbing, understanding of hard money loans, expertise in their housing market, and auction skills have been large factors to their success. That said, you've also been brushing up your rehab and renovation knowledge, have a very good licensed contractor lined up and are positive that you will be able to do an impressive job for this house.
But where do real estate investors find money? If you approach a standard lender, such as a bank for funding, it is likely going to take at least 4-8 weeks for your acceptance to come through and the funds to be dispersed. Thus if you happen to be hoping for a fast closing, it's important to understand that this will cost you a couple of weeks, causing you to lose out on the house.
To add to it, banks have been tightening their lending requirements in recent times, making it difficult for people to obtain a regular home loan if their credit situation is not flawless or he doesn't have a consistent salaried job. So does this mean you are without an option, but to drop your aspiration of venturing into rehabbing? Definitely not, seeing as you always have the Gallup hard money loan alternative.
A hard money home loan in Gallup provides you with what is possibly most sought after by real estate investors — a fast closing in as little as a few weeks. Furthermore, hard money lenders are capable of doing loans up to 70% LTV of the property's valuation, as identified by a professional third-party evaluator. On the surface, hard money real estate loans, with starting interest rates of 10%, could be seen as higher in price than bank lending options. But the lengths of these loans tend to be quite shorter, which means the interest rate is far less significant. Short-term loans of a couple months to a few years are best thought of as cost of capital, the same as every other expense related to a project. After you fix up and sell the house, recouping this expense is just like recouping the one for home appliances you placed into the house.
Furthermore, even individuals with bad credit will be able to qualify for a hard money mortgage. Instead of focusing entirely on the applicant's credit score or income, Gallup hard money lenders, who can be a private company or an individual, say yes to a loan as a result of assessing the property value, how easy it will be to market, its location, and the probability of getting back their capital if they have to foreclose the loan. The total amount that an individual can put upfront towards the property, how much practical experience he has in real estate investments, and price range of equivalent homes in the same vicinity are additional details that go into determining a borrower's eligibility for a hard money real estate loan.
So in the event you run into a good and worthwhile flipping opportunity, be assured you will have a hard money lender in Gallup, ready to loan you the capital that you need. Submit the contact form or give us a call to discuss your project.
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