Hard Money Loans in Groesbeck
Imagine you've come across this really great deal for a fix and flip property in an ideal neighborhood, and you're either an experienced real estate investor or a newbie who hopes to try his hand at flipping. Professional house flippers, like the young married couple on Flip or Flop, HGTV's reality flipping show, are capable of generating a profit of forty to fifty grand as an average on multiple occasions. Of course, you also realize that their great results are credited to the simple fact that they are experts, are well versed in hard money loans, they know the market really well and furthermore, they are good at working an auction to purchase their homes at an appropriate price. On the other hand, you're convinced that your first class rehab and remodeling knowledge will assist you to do a great job for this house — in addition, you already have lined up one of the most sought after contractors in the business to take on this project.
But where can you find the needed funding for flipping? When you get in touch with a common lending institution, much like a bank for a loan, it's likely going to take no less than thirty to sixty days for your approval to be completed and your money to be accessible. Due to the fact all the home owners are looking for a fast closing, that does not appear to be a wise idea to you at all.
On top of this, banks have been tightening their lending standards in recent times, rendering it more hard for a person to get a traditional loan if their credit situation is not flawless or he doesn't have a consistent salaried occupation. So does this mean you have no option, but to give up your dream to venture into flipping? Certainly not, on the grounds that you could always use the Groesbeck hard money loan approach to pay for your rehab project.
If you decide to get a hard money home loan in Groesbeck, you'll get what's perhaps most important to real estate transactions across the country — a very fast closing of roughly two weeks. Also, hard money lenders can approve lending up to 70% LTV of the property value, as assessed by a qualified third-party appraiser. Some individuals believe hard money real estate loans to be higher in price than ordinary loans, because the lending rates for these loans often start off at 10%. But the time frames of these loans are quite short, which means the interest rate is far less important. The cost of such short-term loans should be viewed much like any other financial outlay that you might encounter in the course of the project. And when you've flipped the property, recovering this expense is identical to recuperating the expense for the kitchen and bath updates you did.
What's more, it is easy to be eligible for a a hard money mortgage, even if your credit situation is not that superb. The applicant's credit score will not be the primary deciding factor for Groesbeck hard money lenders — they also consider the piece of real estate, how much it is worth, where it is located, and its ability to bring back their investment if things do not go as planned. Several other variables that influence an applicant's eligibility for a hard money real estate loan can include how much money he is in a position to put towards a down payment, his former experience being a real estate investor, and price range of similar, just recently sold residences in the vicinity.
So in case you have stumbled upon a really great home to flip with a significant probability of returns, you have also discovered a hard money lender in Groesbeck that's prepared to finance your rehab project. Enter your info into the contact form or give us a call to discuss your property or properties.
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