Hard Money Loans in Glenn Heights
A remarkable deal on a fix and flip property in a good subdivision shows up out of the blue — sounds so good that it is hard to believe. You may have heard that competent property flippers, such as the married couple on HGTV's Flip or Flop, have a remarkable average profit margin of around forty to fifty thousand dollars. And without a doubt, they are helped in a major way due to their professional know-how, auction abilities and understanding of hard money loans. Nonetheless, your rehab and renovation skills aren't bad either — aside from that, you have already located a good general contractor to handle this project.
But how can real estate investors get funding? Should you go after a conventional loan via a bank, you will have to wait around approximately 4-8 weeks before the loan is approved and your money is readily available. Thus if you happen to be looking for a fast closing, you must understand or know that this may cost you weeks, causing you to miss out on the sale.
To add to it, banks have been tightening up their lending standards in recent years, which makes it hard for someone to get a typical home loan if their credit circumstances are not perfect or he is lacking a consistent salaried profession. So do you have to give up and forego your ambition to embark into real estate? Not at all, especially when Glenn Heights hard money loans enable you to realize great things in the real estate market.
A hard money home loan in Glenn Heights can provide what is deemed essential to most real estate deals — a quick closing of just a couple of weeks and at times even less. Plus, the LTV value can range up to 70% of the home value, as determined by a competent appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, could be seen as higher priced than bank financing. But if you consider these loans are not long-term home loans, the interest rate can be misleading. When it comes to short-term loans of 1 or 2 years or even less, you should look at them the same as you might for any other expense for the project. After you fix up and sell the home, recovering this expense is no different than recuperating the expense for new kitchen appliances you installed in the property.
Aside from that, hard money mortgages are not difficult to qualify for, even when you have a bad credit rating. The applicant's credit score will not be the single deciding factor for Glenn Heights hard money lenders — they also look at the house, how much it is worth, where it is located, and its capacity to earn back their financial commitment if things should not work out as intended. On top of that, if the applicant have proven experience in similar real estate endeavors, can place down money for a down payment, and the cost of equivalent houses in the neighborhood works to his benefit, he will have a really good shot of qualifying to get a hard money real estate loan.
So any time you come across a good and worthwhile investment opportunity, rest assured you'll have a hard money lender in Glenn Heights, in a position to lend you the capital you will need. Submit the contact form or give us a call and let's talk about your property or properties.
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