Hard Money Loans in Grapevine
A remarkable bargain on a fix and flip opportunity located in an excellent area of the city shows up out of the blue — sounds too good to be true. Everybody knows that expert professional flippers, like Tarek and Christina El Moussa from HGTV's reality home flipping program, Fix or Flop, can generate an average profit margin of $40,000 to $50,000 on their flips. And indeed, they are aided in a big way by their professional knowledge, auction expertise and understanding of hard money loans. On the other hand, you're convinced that your first class rehab and renovation knowledge will help you do a quality job on this project — additionally, you've already arranged to have one of the premier building contractors in the area to take on this job.
But how do you get the needed financing for home flipping? When you meet with a customary lending institution, such as a bank for financing, it in all likelihood will take no less than four to eight weeks for your approval to be completed and your money to be dispersed. So if you're anticipating a fast closing, you need to realize that this may set you back by weeks, causing you to miss out on the home.
With banks bringing in more challenging loan requirements in recent years, it has become much harder for a self-employed person to obtain a mortgage loan, especially when his credit circumstances are not optimal. So will a lack of funding stop you from sticking to your dream? Never, considering that you could always go the Grapevine hard money loan route to pay for your home renovating project.
If you decide to apply for a hard money home loan in Grapevine, you will get what is probably most vital to real estate negotiations across the country — a very fast closing of around a couple weeks. And additionally, loans can be made up to 70% loan-to-value of the "as is" value, as calculated by a professional appraiser. At first glance, hard money real estate loans, with starting interest rates of 10%, seem to be more expensive than bank lending products. But the term lengths for these loans are comparatively shorter, making the rate far less important. The price tag on such short-term loans ought to be considered on par with any other expenditure that you might encounter during the project. Once you've turned the property and have made a positive return, you'll be able to recoup this expense from the house — similar to recovering the cost of brand-new kitchen appliances that you've put in.
Moreover, even individuals with bad credit can still qualify for a hard money mortgage. Instead of focusing primarily on the borrower's credit score or wages, Grapevine hard money lenders, who can be a private company or an individual, authorize a loan as a result of examining the home value, its marketability, where it is located, and the odds of recuperating their capital in case of foreclosure. On top of that, if the applicant can demonstrate past experience in similar real estate endeavors, can place down cash towards a down payment, and the value of similar properties in the area works in his favor, he will have a really good likelihood of being approved for a hard money real estate loan.
Searching for a hard money lender in Grapevine to cover expenses for your fix and flip endeavor is not very challenging, assuming that the opportunity that lies ahead of you is promising and boasts a good prospect for returns. Submit the contact form or give us a call to talk about your property.
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