Hard Money Loans in Garland
A remarkable deal on a fix and flip property located in a good area of the city shows up out of the blue — sounds too good to be true. Professional residential home flippers, similar to the young married couple on Flip or Flop, HGTV's reality flipping series, are capable of generating a profit of $40-$50k for most homes. Undoubtedly, you also know that their results can be attributed to the simple fact that they are professionals, are proficient in hard money loans, they know market trends really well and in addition, they know how to work an auction for getting an appropriate price. Nonetheless, your rehab and remodeling skills aren't that bad either — besides, you have already found the right licensed contractor to handle this job.
But how exactly can real estate investors get funds? When you go after a traditional bank loan, you will need to wait around roughly 1 to 2 months up until the time the mortgage loan is approved and the funding is accessible. Due to the fact the home owners are wanting to find a fast closing, that does not appear to be a great idea to you in the slightest.
Furthermore, should you have a less-than-perfect credit rating or do not have a routine source of income, it usually is more challenging for you to be eligible for a bank loan, with the tougher loan guidelines banks have introduced lately. So will a shortage of financing prevent you from following your dream? By no means, particularly when Garland hard money loans will assist you to realize great things in the real estate market.
A hard money home loan in Garland boasts what's perhaps most important to real estate investors — a very fast closing time of as few as 14 days. Besides that, hard money lenders can do lending up to 70% LTV of the home's valuation, as estimated by a qualified third-party evaluation. On the surface, hard money real estate loans, with starting interest rates of 10%, appear to be higher priced than bank financing. But the time frames of these loans tend to be much shorter, which makes the interest rate less important. As it pertains to short-term loans of one or two years or even less, you should think of them much like you would other expenses for the project. And once you've turned the property or home, recouping this expense is the exact same as recouping the expense for all the bathroom upgrades you performed.
What's more, it's easy to qualify for a hard money mortgage, even when your credit score is not that great. The customer's credit score isn't the lone determining factor for Garland hard money lenders — they also consider the house, how much it is worth, where it is located, and its capability to earn back their financial commitment if everything does not go as planned. Additional criteria that impact a borrower's eligibility for a hard money real estate loan include what amount of money he is in a position to put into a down payment, his past experience as a real estate investor, and price of similar, fairly recently sold properties nearby.
Locating a hard money lender in Garland to finance your real estate project is not very hard, provided that the opportunity that lies ahead of you is promising and boasts the right potential for returns. Fill out the form on this page or call us to talk about your property.
A loan specialist will be in touch shortly