Hard Money Loans in Gonzales
Suppose that you've stumbled upon this truly good bargain for a fix and flip property located in an ideal location, and you're either a skilled real estate investor or a first-timer who really wants to try out flipping houses. You may have heard that professional property flippers, such as the couple on HGTV's Flip or Flop, enjoy a remarkable average profit margin of around $40,000 – $50,000. And sure, they are helped in a big way by their professional experience, auction abilities and understanding of hard money loans. With that being said, you've also been cultivating your rehab and renovation skills, have a building contractor ready for the project and are certain that you can do a great job on this house.
But how do you obtain the needed financing for flipping? When you get in touch with a standard lending institution, such as a bank for funding, it can take a minimum of thirty to sixty days for your acceptance to be completed and your funds to be furnished. With the home owners seeking a fast closing, that does not seem like a good option to you at all.
With banks establishing more challenging loan requirements in the past several years, it is more difficult for a self-employed person to get a home loan, especially when his credit circumstances are not perfect. So do you have to stop trying and forego your dream to get into the real estate market? By no means, particularly when Gonzales hard money loans will assist you to achieve many amazing things in real estate.
A hard money home loan in Gonzales promises what's possibly most desired by real estate investors — a fast closing in as little as 2 weeks. Furthermore, hard money lenders are able to do funding up to 70% LTV of the property or home value, as estimated by a professional third-party appraiser. At first, hard money real estate loans, with starting lending rates of 10%, appear to be more costly than bank financing. But usually, the rate of interest isn't as useful a measure for these loans, given that they are not long-term loans. As it pertains to short-term loans of 1 or 2 years or even less, you should consider them identical to any other expenditure for your project. And once you've flipped the property or home, recovering this expense is comparable to recuperating the expense for the bathroom or other improvements you performed.
Moreover, even individuals with low credit can still qualify for a hard money mortgage. The customer's credit score is not the sole determining factor for Gonzales hard money lenders — they also analyze the piece of real estate, its market valuation, where it is located, and its potential to return their investment if things should not go as planned. The total amount that an applicant can put upfront for the house, his past real estate experience, and selling price of equivalent homes in the neighborhood are additional factors that go into determining an individual's suitability for a hard money real estate loan.
So in case you have stumbled on a really great real estate opportunity with a huge potential for returns, you've also stumbled upon a hard money lender in Gonzales that's ready to provide funding for your fix and flip project. Complete the form on this page or give us a call to discuss the project you have in mind.
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