Hard Money Loans in Gordon
There's this outstanding opportunity to rehab and flip this nice out of date house in a very good part of town and it looks like the deal you have been expecting for a long time. Professional property flippers, such as the young couple on Flip or Flop, HGTV's reality flipping program, are able to haul in a profit of $40-$50k on average. Undoubtedly, you also know that their results are attributed to the fact that they are professionals, are knowledgeable in hard money loans, they understand the market really well and in addition, they are good at working a public auction to purchase their homes at an appropriate deal. On the other hand, you are convinced that your first class rehab and renovation knowledge will enable you to do a superb job on this project — furthermore, you already have lined up one of the most recommended general contractors in the area to take care of this project.
But where can you get the necessary funding for home flipping? When you go after a regular loan via a bank, you will end up waiting approximately one to two months before the mortgage loan is approved and the funding is readily available. So if you're looking for a fast closing, you need to be aware that this will set you back by a few weeks, causing you to lose out on the sale.
To add to it, banks have already been tightening their lending criteria as of late, making it challenging for someone to receive a traditional home loan if their credit score is not perfect or he does not have a regular salaried profession. So will a lack of funding prevent you from sticking to your ambitions? Certainly not, because you also have the Gordon hard money loan option.
A hard money home loan in Gordon gives you what's possibly most crucial to real estate investors — a quick closing time of as little as 14 days. In addition, the LTV value can reach up to 70% of the home value, as evaluated by a competent appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, appear to be higher priced than bank loans. But the lengths of these loans tend to be much shorter, making the rate much less important. Short-term loans of several months to a handful of years are best approached as cost of capital, the same as every other expenditure in connection with a project. After you renovate and sell off the home, recouping this expense is just like recovering the one for home appliances you installed in the house.
Aside from that, hard money mortgages are not difficult to qualify for, whether or not you have a weak credit score. As an alternative for focusing entirely on the applicant's credit score or income, Gordon hard money lenders, who may be a private company or an individual person, approve a loan as a result of assessing the property value, its marketability, where it is located, and the odds of recouping their capital in the event of foreclosure. Several other variables that affect a customer's eligibility for a hard money real estate loan include what amount of money he is able to put towards a down payment, his previous experience being a real estate investor, and price range of comparative, fairly recently sold residences nearby.
So if you have found a really great real estate opportunity with a significant potential for returns, you've also discovered a hard money lender in Gordon who is happy to fund your fix and flip project. Enter your info into the form or get in touch with us via phone to talk about the project you have in mind.
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