Hard Money Loans in Georgetown
There's this outstanding opportunity to renovate and flip this wonderful old house in a good area and it seems a lot like the deal you've been looking forward to for quite some time. You've probably heard that competent property flippers, like the couple on HGTV's Flip or Flop, enjoy an impressive average profit of around $40,000 – $50,000. Naturally, you also recognize that their great results are due to the fact that they're industry experts, are well versed in hard money loans, they understand the marketplace quite well and in addition, they are good at working a public auction to buy their homes at a good deal. Nevertheless, you're assured that your impressive rehab and renovation skills will help you do a superb job on this home — in addition, you already have lined up one of the best contractors in town to take care of the job.
But capital is a separate issue entirely. A conventional lender, like for example a bank, takes a minimum of 1-2 months to authorize the financing and release the cash. Thus if you happen to be looking for a fast closing, it's important to be aware that this will cost you a couple weeks, causing you to miss out on the sale.
On top of this, banks have been tightening their lending standards in recent years, which makes it challenging for someone to get a regular loan if their credit situation is not flawless or he does not have a consistent salaried job. So will a shortage of funds keep you from sticking with your ambitions? Certainly not, because you also have the Georgetown hard money loan alternative.
A hard money home loan in Georgetown gives you what's deemed essential to many real estate deals — a very fast closing of only a couple of weeks and at many times less. Furthermore, hard money lenders can do loans up to 70% LTV of the home's valuation, as assessed by a certified third-party evaluator. At first, hard money real estate loans, with starting interest rates of 10%, appear to be higher priced than bank lending products. But once you consider these are not long-term mortgage loans, the rate of interest can be misleading. When it comes to short-term loans of 1 or 2 years or even less, you should think of them just like you would other expenditures for your project. Right after you renovate and sell the property, recovering this expense is the same as recouping the cost of the home appliances you installed in the place.
Additionally, it is simple to obtain a hard money mortgage, even in the event your credit rating is not that impressive. Georgetown hard money lenders do not take on a loan exclusively judging by the person's credit score — instead they will analyze the property or home, where it is located and what it is worth, and the property's ability to pay back the loan by itself. Other criteria that affect an applicant's eligibility for a hard money real estate loan can include how much money he is in a position to put towards a down payment, his prior experience being a real estate investor, and price of comparable, recently sold properties in the neighborhood.
So should you run into a good and profitable flipping opportunity, be assured you'll have a hard money lender in Georgetown, able to lend you the capital that you need. Enter your info into the form or call us to discuss the property or properties you have in mind.
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