Hard Money Loans in Grayson
An outstanding deal on a fix and flip opportunity in a nice subdivision shows up out of the blue — seems too good to be true. You've heard that veteran property flippers, such as the couple on HGTV's Flip or Flop, have an impressive average profit close to $40,000 – $50,000. Undoubtedly, you also recognize that their results are credited to the simple fact that they're experts, are knowledgeable in hard money loans, they know the marketplace quite well and they also know how to work an auction to purchase their properties at an appropriate deal. Nonetheless, your rehab and remodeling skills aren't bad either — besides, you've already located an ideal licensed contractor to handle this job.
But financing is often a separate problem entirely. A typical lending institution, for instance a bank, takes no less than 1 to 2 months to approve the mortgage and release the funds. With all the home owners seeking a fast closing, that does not appear like a good idea to you at all.
What's more, for those who have a less-than-perfect credit situation or do not have a consistent income source, it is usually tougher for you to obtain bank financing, with the tougher loan criteria banks have issued as of late. So does that mean you have no option, but to drop your aspiration of venturing into the fix and flip business? Definitely not, because you also have the Grayson hard money loan alternative.
If you opt for a hard money home loan in Grayson, you have access to what is probably most vital to real estate negotiations throughout the country — a fast closing of about fourteen days. In addition, the LTV value can reach up to 70% of the home value, as estimated by a certified appraiser. With the loan rates starting near 10%, hard money real estate loans may appear, at first, to be more expensive as compared with traditional bank loans. But in reality, the rate of interest isn't as useful a measure for these loans, simply because they are not long-term loans. The price of such short-term loans ought to be viewed much like any other cost that you will have to meet for the project. After you rehab and resell the property, recovering this expense is no different than recouping the money you spent for stainless steel appliances you put in the property.
Aside from that, hard money mortgages are not difficult to qualify for, even in the event you have got a low credit rating. Instead of focusing entirely on the person's credit score or net income, Grayson hard money lenders, who can be a privately owned company or an individual person, say yes to a loan as a result of examining the home value, its salability, where it is located, and the odds of recovering their capital in the event of foreclosure. Additional variables that have an impact on a customer's eligibility for a hard money real estate loan include the amount he is in a position to put towards a down payment, his prior experience being a real estate investor, and price of comparable, fairly recently sold homes nearby.
So any time you come across an outstanding and lucrative flipping opportunity, relax knowing you will have a hard money lender in Grayson, equipped to loan you the cash you'll need. Submit the contact form on this page or get in touch with us via phone to talk about the project you have in mind.
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