Hard Money Loans in Garden Ridge
Imagine you've stumbled upon this excellent deal on a fix and flip property in a terrific neighborhood, and you're either an experienced real estate investor or a first-timer who is looking to try his hand at flipping. A majority of people know that knowledgeable professional flippers, like Tarek and Christina El Moussa who do HGTV's reality home flipping series, Fix or Flop, can turn a typical profit of forty to fifty thousand dollars on their home projects. And without a doubt, they are aided in a big way via their professional know-how, auction skills and understanding of hard money loans. However, you're certain that your first class rehab and renovation skills can help you do a quality job on the project — furthermore, you already have arranged to have one of the most sought after general contractors in town to take care of this job.
But how can you obtain the needed funding for home flipping? Should you approach a standard lender, such as a bank for a mortgage loan, it can take, as a minimum, thirty to sixty days for your approval to be completed and the funds to be given out. Considering that the sellers are wanting to find a fast closing, that doesn't seem like a good idea to you at all.
With banks adding harder loan guidelines in the past several years, it has become harder for a self-employed individual to get a mortgage loan, especially when his credit situation is not perfect. So will a lack of financing keep you from sticking with your aspirations? By no means, because you could always use the Garden Ridge hard money loan approach to finance your home flipping project.
When you opt for a hard money home loan in Garden Ridge, you have access to what is probably most essential to real estate transactions across the country — a fast closing of roughly 14 days. Further, financing can be made up to 70% loan-to-value of the "as is" value, as determined by a qualified appraiser. Some people believe hard money real estate loans to be more costly than regular loans, considering interest rates for such loans typically start at 10%. But usually, the rate of interest isn't as relevant for these loans, given that they aren't long-term loans. As it pertains to short-term loans of several years or less, you should consider them the same as you might for every other expenditure for your project. Once you've resold the property or home and have made a positive return, you're able to recoup this expense from the property or home — very much like recovering the cost of brand-new appliances for the kitchen that you've installed.
Besides, hard money mortgages are not difficult to qualify for, even in the event you have got below-average credit. As an alternative for focusing solely on the person's credit score or net income, Garden Ridge hard money lenders, who could be a private company or an individual, say yes to a loan after examining the home value, its salability, where it is located, and the likelihood of recovering their money should they have to foreclose the loan. Additional criteria that impact an applicant's acceptance for a hard money real estate loan include the amount he is able to put into a down payment, his past experience being a real estate investor, and price of similar, recently sold homes nearby.
So in case you have found a wonderful fixer-upper with a huge prospect of returns, you've also found yourself a hard money lender in Garden Ridge who is happy to fund your flipping venture. Fill out the contact form on this page or get in touch with us via phone and let's talk about the property you have in mind.
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