Hard Money Loans in Gun Barrel City
There is this amazing possibility for fixing and flipping this nice old property in a very good area and it looks a lot like the one you have been looking forward to for quite some time. Everybody knows that expert professional flippers, such as Tarek and Christina El Moussa who star in HGTV's reality flipping show, Fix or Flop, can readily turn an average profit margin of $40,000 to $50,000 in their rehab business. It goes without saying their rehabbing experience, knowledge of hard money loans, expertise in their housing market, and auction talents have had a significant role in their success. On the other hand, you are convinced that your impressive rehab and remodeling talents can help you do a quality job on the property — additionally, you already have arranged to have one of the best building contractors in town to handle this project.
But where can real estate investors get financing? When you apply for a regular loan from the bank, you will have to wait roughly 1 to 2 months before the financing is authorized and your funding is ready. Considering that all the sellers want a fast closing, that doesn't seem like a good idea to you whatsoever.
With banks adding harder loan requirements in recent years, it's become more challenging for a self-employed individual to obtain a home loan, especially if his credit situation is not flawless. So will a lack of financing keep you from following your aspirations? Definitely not, because you always have the Gun Barrel City hard money loan alternative.
A hard money home loan in Gun Barrel City offers you what is regarded as crucial to many real estate transactions — a fast closing of only a few weeks and at times less. In addition, the LTV value can go up to 70% of the property value, as determined by a credentialed appraiser. On the surface, hard money real estate loans, with starting lending rates of 10%, could be seen as more pricey than bank loans. But once you consider these loans are not long-term mortgage loans, the rate tends to be misleading. The cost of such short-term loans ought to be looked at on par with every other cost that you will encounter during the project. Once you've turned the home and have made a successful financial gain, you can get back this expense from the house — the same as recouping the cost of brand-new kitchen appliances that you have installed.
Additionally, it's simple to obtain a hard money mortgage, even if your credit situation is not that great. Rather than focusing primarily on the person's credit score or income, Gun Barrel City hard money lenders, who can be a privately owned company or an individual, authorize a loan after evaluating the property value, how easy it will be to market, where it is located, and the possibility of recouping their capital if they have to foreclose the loan. Other criteria that affect a borrower's approval for a hard money real estate loan include what amount of money he can put into a down payment, his previous experience being a real estate investor, and selling price of comparative, fairly recently sold properties nearby.
Searching for a hard money lender in Gun Barrel City to cover expenses for your flipping business is not very challenging, as long as the opportunity in front of you is promising and offers a good prospect for returns. Fill out the form or call us and let's discuss the property you have in mind.
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