Hard Money Loans in Georgetown
You discovered this amazing possibility for renovating and flipping this wonderful outdated house in a good part of town and it looks a lot like the one you have been wanting for quite some time. Everyone knows that capable professional flippers, like Tarek and Christina El Moussa who do HGTV's reality flipping show, Fix or Flop, can readily turn a typical profit of $40,000 to $50,000 in their rehab business. It goes without saying their rehabbing experience, understanding of hard money loans, familiarity with the market, and auction skills have been large factors to their success. On the other hand, you're convinced that your superb rehab and renovation skills will assist you to do a great job on the home — additionally, you've already lined up one of the finest building contractors in the business to handle this project.
But how can real estate investors obtain money? If you go after a normal bank loan, you will have to wait somewhere around one to two months before the loan is approved and the funds are ready to go. Because most sellers would rather have a fast closing, you might have to start searching for some other financing options.
What's more, for those who have a less-than-perfect credit rating or do not receive a conventional source of income, it usually is harder to be eligible for a a bank loan, with the more stringent loan requirements banks have put in place recently. So will a lack of financing keep you from pursuing your ambitions? Absolutely not, seeing as you also have the Georgetown hard money loan option.
A hard money home loan in Georgetown provides what is possibly most important to real estate investors — a very fast closing in as few as a few weeks. Aside from that, loan amounts can be made up to 70% loan-to-value of the as-is valuation, as established by a qualified appraiser. On the surface, hard money real estate loans, with starting lending rates of 10%, seem to be higher in price than bank loans. But the time frames of these loans are much shorter, making the interest rate less important. Short-term loans of a couple of months to a handful of years are best understood as cost of capital, similar to every other financial outlay associated with a project. Once you've sold the house and have made a successful financial gain, you'll be able to get back this expense from the property — much like recuperating the money necessary for the brand-new appliances for the kitchen that you've put in.
Besides, hard money mortgages are easy qualifying, even if you posses below-average credit. Georgetown hard money lenders do not take on a loan solely on the basis of the person's credit score — instead they will assess the home, its location and value, and the property's ability to pay back the financing independent of the applicant. How much a person can put down beforehand for the property or home, how much practical experience he has in real estate investments, and selling price of comparative homes in the same vicinity are additional factors that go into analyzing an individual's qualification for a hard money real estate loan.
So should you run into an outstanding and profitable investment opportunity, rest assured you'll have a hard money lender in Georgetown, prepared to loan you the capital you need. Submit the contact form on this page or get in touch with us via phone to talk about the project you have in mind.
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