Hard Money Loans in Granbury
Imagine you've come across this truly good deal on a fix and flip property you found in an ideal location, and you happen to be either an experienced real estate investor or a first-timer who is looking to try his hand at flipping. Professional home flippers, such as the young couple on Flip or Flop, HGTV's reality flipping series, are able to generate a gain of forty to fifty grand on most projects. Without question, their past experiences rehabbing, knowledge of hard money loans, familiarity with the market, and auction talents have had a significant role in their results. Nonetheless, your rehab and remodeling skills aren't that bad either — besides, you've already located a suitable general contractor to take on this home.
But funding is usually a different question entirely. If you get in touch with a standard lending institution, such as a bank for funding, it in all likelihood will take, at the very least, 30-60 days for the approval to be completed and the money to be furnished. Considering that all the home owners want a fast closing, that does not appear like a good option to you at all.
With banks establishing tougher loan criteria in recent times, it is harder for a self-employed individual to find a mortgage loan, especially if his credit rating is not optimal. So must you give up and forego your ambition to embark into fix and flips? Under no circumstances, especially when Granbury hard money loans will assist you to realize great things in the real estate world.
If you put in an application for a hard money home loan in Granbury, you will get what's perhaps most vital to real estate offers across the country — a quick closing of approximately 14 days. Additionally, loans can be made up to 70% loan-to-value of the as-is value, as established by a qualified appraiser. With the rates starting out near 10%, hard money real estate loans may appear, at first glance, to be more costly in comparison with traditional bank lending products. But the lengths of these loans are comparatively shorter, making the interest rate less significant. Short-term loans of several months to a few years are best thought of as cost of capital, the same as all other costs involved with a project. Right after you rehab and sell off the house, recouping this expense is just like recuperating the cost of the new kitchen appliances you installed in the house.
Apart from this, hard money mortgages are easy qualifying, even in the event you posses a low credit rating. Instead of focusing solely on the applicant's credit score or net income, Granbury hard money lenders, who could be a privately owned company or an individual, say yes to a loan as a result of evaluating the property value, its marketability, where it is located, and the probability of recuperating their capital in the event of foreclosure. Adding to this, if the applicant can demonstrate past experience in similar real estate projects, can place down cash towards a down payment, and the value of comparable properties in the vicinity works to his benefit, he has got a really good chance of being approved for a hard money real estate loan.
Searching for a hard money lender in Granbury to finance your flipping business is not very challenging, assuming that the opportunity in front of you is promising and offers a strong potential for returns. Fill out the contact form or get in touch with us via phone to talk about the project you have in mind.
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