Hard Money Loans in Gretna
Suppose that you've run across this excellent deal on a fix and flip property in a great location, and you're either a skilled real estate investor or a newbie who hopes to try out flipping houses. Professional home flippers, like the young married couple on Flip or Flop, HGTV's reality flipping program, are able to haul in a profit of forty to fifty grand for most homes. And indeed, they are aided in a big way as a result of their professional experience, auction abilities and understanding of hard money loans. On the other hand, you are convinced that your impressive rehab and remodeling abilities will enable you to do an outstanding job for this project — additionally, you already have lined up one of the most suggested general contractors in the area to take on the project.
But where can real estate investors get capital? In the event you meet with a regular lending institution, like a bank for a mortgage loan, it is in all likelihood going to take, at the very least, four to eight weeks for your acceptance to come through and your funds to be accessible. So if you're expecting a fast closing, you must understand that this will cost you a couple of weeks, making you miss out on the house.
What's more, for those who have a less-than-perfect credit situation or do not receive a consistent source of income, it can be harder to be eligible for bank financing, considering the tighter loan criteria banks have issued in recent times. So does this mean you are without an option, but to drop your aspiration of venturing into flipping? Certainly not, on the grounds that you could always go the Gretna hard money loan route to finance your home flipping project.
A hard money home loan in Gretna provides what's probably most important to real estate investors — a quick closing time of as few as a few weeks. Additionally, loan amounts can be done for up to 70% loan-to-value of the "as is" home's valuation, as deemed by a qualified appraiser. Some people regard hard money real estate loans to be costlier than customary loans, since the interest rates of such loans ordinarily start off at 10%. But the term lengths for these loans are comparatively short, which means the interest rate is much less important. Short-term loans of several months to a handful of years are best approached as cost of capital, the same as all other expenditures involved with a project. Right after you remodel and unload the house, recouping this expense is the same as recouping the cost of the stainless steel appliances you installed in the place.
What's more, it's easy to be eligible for a hard money mortgage, regardless of whether your credit score is not that impressive. Instead of focusing primarily on the borrower's credit score or income, Gretna hard money lenders, who can be a privately owned company or an individual, say yes to a loan after analyzing the property value, its marketability, its location, and the likelihood of recovering their money should they have to foreclose the loan. Several other criteria that have an impact on a borrower's approval for a hard money real estate loan can include how much money he can put into a down payment, his prior experience being a real estate investor, and price of comparative, just recently sold residences in the area.
So any time you come across a good and profitable investment opportunity, be assured you will have a hard money lender in Gretna, able to loan you the money you may need. Enter your info into the form on this page or call us and let's discuss your property.
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