Hard Money Loans in Grand Saline
A remarkable buy on a fix and flip opportunity in a nice neighborhood suddenly turns up — seems so good that it is difficult to believe. You may have heard that professional house flippers, like the couple on HGTV's Flip or Flop, have an impressive average profit of around $40,000 – $50,000. And without a doubt, they are aided in a big way due to their professional knowledge, auction expertise and familiarity with hard money loans. Still, your rehab and renovation knowledge isn't that bad either — in any case, you've already located the right contractor to take on the home.
But capital can be a separate issue entirely. When you opt for a regular bank loan, you will need to wait around somewhere around one to two months until eventually the loan is authorized and the money is accessible. Considering that all the home owners are looking for a fast closing, that doesn't appear to be a good idea to you at all.
With banks bringing in more challenging loan requirements in the last few years, it has become more difficult for a self-employed individual to get a mortgage loan, particularly if his credit situation is not perfect. So does this leave you with no other option, but to abandon your aspiration of getting into home flipping? By no means, particularly while Grand Saline hard money loans can help you achieve great things in the real estate world.
If you should put in an application for a hard money home loan in Grand Saline, you'll get what's perhaps most essential to real estate negotiations across the country — a fast closing of roughly 14 days. Furthermore, hard money lenders will often consent to lending up to 70% LTV of the home's valuation, as estimated by a credentialed third-party evaluation. At first glance, hard money real estate loans, with starting lending rates of 10%, seem to be more expensive than bank lending products. But the term lengths for these loans are quite short, which makes the rate far less significant. Short-term loans of several months to a handful of years are best thought of as cost of capital, much like any other expenditure in connection with a project. Right after you rehab and sell the home, recovering this expense is no different than recovering the cost of the stainless steel appliances you installed in the house.
Additionally, it's easy to qualify for a hard money mortgage, regardless if your credit rating is not that great. Grand Saline hard money lenders do not approve a loan solely according to the borrower's credit score — rather they will examine the home, where it is located and what it is worth, and the property's capacity to pay back the loan by itself. On top of that, if the borrower have proven experience in similar real estate projects, can put down money towards the down payment, and the value of equivalent houses in the vicinity works to his benefit, he has got an excellent chance of qualifying for a hard money real estate loan.
So any time you run into a good and worthwhile flipping opportunity, relax knowing you will have a hard money lender in Grand Saline, ready to loan you the capital you'll need. Complete the contact form on this page or call us and let's talk about your property or properties.
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