Hard Money Loans in Giddings
A remarkable buy on a fix and flip property located in an excellent area of the city suddenly shows up — seems so good that it is hard to believe. A majority of people know that knowledgeable professional flippers, like Tarek and Christina El Moussa from HGTV's reality home flipping program, Fix or Flop, are able to make a typical profit of forty to fifty thousand dollars on their flips. It goes without saying their rehabbing experience, knowledge of hard money loans, familiarity with the housing market, and auction talents have been large factors to their success. With that being said, you've recently been brushing up your rehab and remodeling knowledge, have got a licensed contractor ready for the project and are certain that you can do an impressive job on this home.
But money is usually a different problem entirely. Should you meet with a regular lending institution, such as a bank for a loan, it likely will take a minimum of thirty to sixty days for the approval to come through and the money to be given out. Given that sellers prefer a fast closing, you might have to start seeking out additional funding options.
With banks establishing tougher loan guidelines in recent times, it is now more difficult for a self-employed individual to get a mortgage loan, particularly if his credit circumstances are not perfect. So do you have to admit defeat and forego your desire to venture off into the real estate market? Certainly not, seeing as you also have the Giddings hard money loan alternative.
A hard money home loan in Giddings gives you what's perhaps most desired by real estate investors — a fast closing time of as few as 14 days. Additionally, financing is made up to 70% loan-to-value of the as-is home value, as calculated by a qualified appraiser. At first, hard money real estate loans, with starting lending rates of 10%, appear to be higher in price than bank loans. But usually, the lending rate is not as pertinent for these loans, given that they are not long-term financing. The price of such short-term loans ought to be considered on par with any other expense that you would encounter in the course of the project. And when you have finally flipped the home, recuperating this expense is identical to recouping the expense for the bathroom improvements you performed.
Apart from this, hard money mortgages are easy qualifying, even in the event you posses bad credit. The borrower's credit score isn't the lone deciding factor for Giddings hard money lenders — in addition, they examine the home, how much it is worth, its location, and its capacity to bring back their investment if everything does not go as planned. On top of this, if the person have proven experience in similar real estate endeavors, can place down cash for a down payment, and the cost of comparable properties in the area works to his benefit, he stands a very good chance of being approved to get a hard money real estate loan.
Locating a hard money lender in Giddings to finance your real estate project is not very challenging, as long as the opportunity that lies before you is promising and boasts a good potential for returns. Enter your info into the form on this page or give us a call to talk about the property or properties you have in mind.
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