Hard Money Loans in Georgetown
Imagine you've encountered this truly good bargain for a fix and flip property located in an ideal location, and you're either a seasoned real estate investor or a first-timer who hopes to try his hand at flipping. A majority of people know that expert professional flippers, such as Tarek and Christina El Moussa who do HGTV's reality flipping show, Fix or Flop, are able to earn a typical profit of $40,000 to $50,000 in their rehab business. Of course, you also recognize that their success can be credited to the fact that they're professionals, are proficient in hard money loans, they understand the marketplace really well and they also are good at working a public auction to purchase their houses at a reasonable deal. Still, your rehab and remodeling knowledge isn't that bad either — in any case, you have already found an ideal building contractor to handle this job.
But how can real estate investors get financing? When you apply for a regular bank loan, you will wind up waiting approximately one to two months before the loan is approved and your funding is ready. Due to the fact the home owners are seeking a fast closing, that does not appear like a good option to you in the slightest.
Furthermore, in case you have a less-than-perfect credit situation or don't receive a routine income source, it may be tougher for you to obtain bank financing, with the more stringent loan guidelines banks have issued as of late. So does this leave you with no option, but to abandon your aspiration of getting into home flipping? Not at all, particularly while Georgetown hard money loans enable you to accomplish great things in real estate.
A hard money home loan in Georgetown gives you what is probably most important to real estate investors — a fast closing time period of as little as 14 days. Plus, the LTV value can reach up to 70% of the home's valuation, as determined by a competent appraiser. Some individuals believe hard money real estate loans to be more pricey than regular financing, since the lending rates for these loans typically start at 10%. But usually, the lending rate is not as useful a measure for these loans, given that they aren't long-term financing. Short-term loans of a couple of months to a few years are best understood in terms of cost of capital, much like every other expense related to a project. When you have turned the home and have made a good gain, you can get back this expense from the property or home — the same as recovering the money necessary for the brand-new appliances for the kitchen that you have put in.
Apart from this, hard money mortgages are not difficult to qualify for, regardless if you have a low credit rating. The borrower's credit score isn't the exclusive determining factor for Georgetown hard money lenders — they also examine the house, what is it valued at, where it is located, and its capability to earn back their financial commitment if everything does not work out as intended. On top of that, if the applicant can demonstrate past experience in comparable real estate ventures, can place down money for the down payment, and the price of comparative houses in the vicinity works in his favor, he has got a really good likelihood of being approved for a hard money real estate loan.
So in the event you run into a very good and lucrative flipping opportunity, feel comfortable knowing you will have a hard money lender in Georgetown, willing to loan you the capital you may need. Enter your info into the contact form on this page or give us a call and let's talk about your property.
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