Hard Money Loans in Georgetown
An incredible deal on a fix and flip opportunity in a very good subdivision suddenly shows up — seems too good to be true. Professional property flippers, such as the young couple on Flip or Flop, HGTV's reality flipping series, are able to generate a profit of forty to fifty grand as an average on more than one occasion. Without question, their rehabbing experience, knowledge of hard money loans, expertise in their market, and auction skills have had an important role in their results. Nonetheless, your rehab and remodeling skills aren't that bad either — aside from that, you've already located a good contractor to tackle this home.
But where can real estate investors find funding? When you get in touch with a regular lending institution, like a bank for a loan, it can take a minimum of four to eight weeks for your acceptance to be completed and the funds to be sent out. Because most home owners give preference to a fast closing, you might need to begin seeking out some other funding options.
With banks introducing more challenging loan standards in the past several years, it has become harder for a self-employed individual to obtain a home loan, especially when his credit rating is not optimal. So will a shortage of financing prevent you from sticking with your dream? Under no circumstances, particularly when Georgetown hard money loans enable you to accomplish many amazing things in the real estate market.
A hard money home loan in Georgetown offers what's considered crucial to many real estate transactions — a fast closing of only a couple of weeks and oftentimes less. Besides that, hard money lenders are able to do funding up to 70% LTV of the home value, as assessed by a licensed third-party evaluator. Some people regard hard money real estate loans to be more costly than customary loans, considering interest rates for these loans generally start out at 10%. But usually, the lending rate isn't as useful a measure for these loans, since they are not long-term loans. Short-term loans of several months to a few years are best looked at in terms of cost of capital, much like all other expenses associated with a project. Once you've turned the property or home and have made a good return, you can recover this expense from the property — just like recouping the money necessary for the brand-new appliances for the kitchen that you installed.
Besides, hard money mortgages are not hard to qualify for, even in the event you have a bad credit rating. The applicant's credit score will not be the sole determining factor for Georgetown hard money lenders — in addition, they examine the house, its market value, where it is located, and its capability to earn back their financial commitment if things should not go as planned. Adding to this, if the applicant can demonstrate prior experience in equivalent real estate projects, can put down money for a down payment, and the price of comparative homes in the area works in his favor, he has a good shot of being approved for a hard money real estate loan.
So in case you have found a really great fixer-upper with a significant potential for returns, you have also discovered a hard money lender in Georgetown who's prepared to finance your fix and flip project. Submit the contact form on this page or call us to talk about your project.
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