Hard Money Loans in Gillespie
A fabulous bargain on a fix and flip opportunity located in a good subdivision suddenly shows up — sounds too good to be true. You may have heard that competent house flippers, such as the married couple on HGTV's Flip or Flop, turn an impressive average return of around forty to fifty thousand dollars. And sure, they are aided in a big way by their professional know-how, auction abilities and understanding of hard money loans. Nonetheless, your rehab and renovation skills aren't that bad either — besides, you've already located the right licensed contractor to tackle this job.
But how can you obtain the needed capital for flipping? If you meet with a common lender, much like a bank for funding, it is very likely going to take a minimum of thirty to sixty days for your acceptance to be completed and your money to be given out. So if you are anticipating a fast closing, it's important to understand or know that this may set you back by a couple of weeks, causing you to lose out on the sale.
With banks introducing harder loan criteria in the last few years, it's become harder for a self-employed individual to get a mortgage loan, especially when his credit circumstances are not perfect. So does this leave you with no option, but to give up your ambition of venturing into rehabbing? By no means, because you could always go the Gillespie hard money loan route to fund your home flipping project.
A hard money home loan in Gillespie provides what's possibly most important to real estate investors — a fast closing time of as few as 14 days. In addition, the LTV value can range up to 70% of the home's valuation, as determined by a credentialed appraiser. With the rates starting near 10%, hard money real estate loans may look, at first, to be higher priced compared to traditional bank financing. But usually, the interest rate isn't as pertinent for these loans, simply because they aren't long-term financing. When it comes to short-term loans of one or two years or even less, you should think of them just like you would other expenses for your project. And when you have sold the house, recouping this expense is the exact same as recouping the expense for all the bathroom or other improvements you did.
Aside from that, hard money mortgages are easy qualifying, regardless if you have got poor credit. The person's credit score will not be the exclusive deciding factor for Gillespie hard money lenders — in addition, they evaluate the property, its market valuation, where it is located, and its ability to bring back their financial commitment if things do not work out as intended. Additional criteria that influence a person's acceptance for a hard money real estate loan can include the amount he can put towards a down payment, his past experience being a real estate investor, and price range of comparable, fairly recently sold homes in the area.
Searching for a hard money lender in Gillespie to fund your renovation project is not difficult, so long as the opportunity that lies ahead of you is promising and offers the right prospect for returns. Fill out the contact form on this page or get in touch with us via phone to talk about your property.
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