Hard Money Loans in Green Tree
There's this phenomenal opportunity to rehab and flip this wonderful out of date property or home in a good location and it seems a lot like the one you have been anticipating for quite a while. Most folks know that skilled professional flippers, along the lines of Tarek and Christina El Moussa from HGTV's reality home flipping show, Fix or Flop, are able to generate an average profit margin of $40,000 to $50,000 on their flips. And yes, they are aided in a major way as a result of their professional know-how, auction skills and knowledge of hard money loans. On the other hand, you're certain that your superb rehab and renovation skills will help you do an outstanding job on this home — in addition, you've already arranged to have one of the most recommended building contractors in town to work on the job.
But where can you get the needed financing for home flipping? A standard lender, say for example a bank, takes a minimum of 1 to 2 months to consent to the mortgage and release the cash. So if you are hoping for a fast closing, it's important to be aware that this will cost you weeks, making you miss out on the home.
As well as this, should you have an unfavorable credit situation or don't have a consistent income source, it is usually tougher for you to obtain a bank loan, considering the more stringent loan requirements banks have introduced recently. So does this mean you are without an option, but to drop your dream of getting into flipping? Certainly not, given that you also have the Green Tree hard money loan option.
A hard money home loan in Green Tree gives you what's viewed as essential to most real estate transactions — a fast closing of only a 2-3 weeks and at times less. What's more, the LTV value can go up to 70% of the home value, as determined by a certified appraiser. With the lending rates starting around 10%, hard money real estate loans might seem, at first glance, to be more pricey compared to traditional bank financing. But once you appreciate that these loans are not long-term home loans, the interest rate may be misleading. When it comes to short-term loans of a few years or even less, you should look at them identical to any other expense for the project. Once you have sold the property and have made a good gain, you can recoup this expense from the house — the same as recovering the money spent on the brand-new appliances for the kitchen that you installed.
What's more, it is simple to qualify for a hard money mortgage, regardless if your credit situation is not that great. Instead of focusing solely on the person's credit score or wages, Green Tree hard money lenders, who could be a private company or an individual person, say yes to a loan as a result of assessing the property value, its salability, where it is located, and the likelihood of recuperating their money if they have to foreclose the loan. Other factors that have an impact on an applicant's acceptance for a hard money real estate loan can include how much money he is in a position to put into a down payment, his prior experience as a real estate investor, and price range of similar, fairly recently sold residences in the vicinity.
So should you come across a really good and worthwhile investment opportunity, be assured you will have a hard money lender in Green Tree, ready to loan you the cash you'll need. Complete the contact form on this page or give us a call and let's discuss your property or properties.
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