Hard Money Loans in Greenhills
An incredible buy on a fix and flip property in a very good subdivision shows up out of the blue — sounds too good to be true. A majority of people know that expert professional flippers, like Tarek and Christina El Moussa who do HGTV's reality home flipping show, Fix or Flop, can generate an average profit margin of $40,000 to $50,000 on their flips. And yes, they are helped in a major way via their professional knowledge, auction skills and understanding of hard money loans. Nonetheless, your rehab and remodeling skills aren't bad either — in any case, you have already found an ideal general contractor to handle the project.
But how do you find the necessary financing for flipping? When you meet with a regular lender, like a bank for financing, it's more than likely going to take, as a minimum, four to eight weeks for your approval to be completed and the funds to be accessible. So if you're anticipating a fast closing, you must be aware that this will set you back by a couple weeks, causing you to lose out on the opportunity.
With banks introducing tougher loan criteria in the past several years, it is now harder for a self-employed person to obtain a home loan, especially when his credit situation is not perfect. So will a shortage of funding keep you from sticking to your ambitions? Most certainly not, given that you always have the Greenhills hard money loan option.
A hard money home loan in Greenhills provides what is probably most essential to real estate investors — a fast closing time period of as few as 14 days. Plus, the LTV value can reach up to 70% of the property value, as evaluated by a credentialed appraiser. At first, hard money real estate loans, with starting interest rates of 10%, appear to be more pricey than bank lending products. But usually, the interest rate is not as useful a measure for these loans, simply because they are not long-term loans. Short-term loans of a couple months to a few years are best understood in terms of cost of capital, similar to all other costs in connection with a project. And once you have sold the home, recovering this expense is identical to recovering the expense for the kitchen and bath improvements you did.
Also, it's simple to qualify for a hard money mortgage, regardless if your credit situation is not that impressive. Rather than focusing entirely on the applicant's credit score or net income, Greenhills hard money lenders, who can be a private company or an individual, authorize a loan after evaluating the home value, ease of marketability, its location, and the possibility of recouping their money should they have to foreclose the loan. Additional variables that have an impact on an individual'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, recently sold homes in the vicinity.
Finding a hard money lender in Greenhills to fund your flipping business is not very hard, assuming that the opportunity in front of you is promising and offers a strong potential for returns. Complete the contact form or give us a call to discuss your project.
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