Hard Money Loans in Gering
A fabulous deal on a fix and flip property in a good subdivision suddenly turns up — sounds so good that it is hard to believe. Many people know that expert professional flippers, such as Tarek and Christina El Moussa who star in HGTV's reality home flipping show, Fix or Flop, can generate an average profit of $40,000 to $50,000 on their flips. And sure, they are helped in a major way via their professional know-how, auction skills and understanding of hard money loans. Still, your rehab and remodeling skills aren't bad either — besides, you have already identified a good licensed contractor to tackle the job.
But funding is often a different question entirely. If you apply for a normal loan via a bank, you will end up waiting roughly 30-60 days up until the time the money is authorized and your funding is available. With the sellers looking for a fast closing, that does not appear to be a good option to you at all.
On top of this, banks have been tightening their lending requirements as of late, rendering it more hard for someone to get a typical loan if their credit circumstances are not perfect or he doesn't have a regular salaried profession. So do you have to give up and abandon your dream to embark into the real estate market? Most certainly not, seeing as you always have the Gering hard money loan alternative.
A hard money home loan in Gering provides you with what's perhaps most essential to real estate investors — a fast closing time period of as few as 14 days. Besides that, hard money lenders will often consent to funding up to 70% LTV of the property's valuation, as assessed by a credentialed third-party evaluation. At first glance, hard money real estate loans, with starting interest rates of 10%, appear to be higher priced than bank financing. But once you understand these are not long-term mortgage loans, the rate tends to be misleading. As it pertains to short-term loans of 1 or 2 years or even less, you should think about them just like you would other expenses for the project. Once you've sold the property and have made a successful financial gain, you're able to recoup this expense from the property — similar to recouping the money necessary for the brand-new home appliances that you've put in.
Besides, hard money mortgages are not difficult to qualify for, even when you posses poor credit. The customer's credit score will not be the sole determining factor for Gering hard money lenders — in addition, they examine the home, how much it is worth, its location, and its potential to earn back their investment if things should not go as planned. Other factors that impact an individual's eligibility for a hard money real estate loan include how much he can put towards a down payment, his past experience as a real estate investor, and price of comparable, recently sold homes in the area.
So any time you run into a good and worthwhile investment opportunity, be assured you will have a hard money lender in Gering, prepared to loan you the cash that you need. Submit the form or give us a call and let's discuss the project you have in mind.
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