Hard Money Loans in Guntersville

A fantastic deal on a fix and flip opportunity in a nice area of the city all of a sudden shows up — seems too good to be true. Professional property flippers, similar to the young couple on Flip or Flop, HGTV's reality flipping series, are able to haul in a gain of forty to fifty grand as an average on multiple occasions. And sure, they are helped in a big way via their professional experience, auction abilities and familiarity with hard money loans. Having said that, you've recently been brushing up your rehab and renovation knowledge, have a building contractor arranged and are positive that you're capable of doing an impressive job on this house.

But how can you get the necessary financing for home flipping? A standard lender, for instance a bank, takes no less than 1-2 months to consent to the mortgage and release the cash. Since the majority of sellers favor a fast closing, you may have to start seeking out additional funding options.

To add to it, banks have been tightening up their lending standards as of late, which makes it tough for people to receive an ordinary loan if their credit circumstances are not flawless or he does not have a consistent salaried profession. So will inadequate funding prevent you from pursuing your ambitions? Absolutely not, given that you always have the hard money loan alternative.

A hard money home loan in offers you what is deemed vital to most real estate deals — a very fast closing of just a 2-3 weeks and sometimes even less. Also, hard money lenders are capable of doing funding up to 70% LTV of the home's valuation, as estimated by a credentialed third-party evaluation. With rates starting off around 10%, hard money real estate loans might appear, at first, to be higher in price as compared with conventional bank loans. But usually, the rate of interest is not as useful a measure for these loans, because they aren't long-term loans. When it comes to short-term loans of one or two years or less, you should look at them similar to any other expenditure for your project. And when you have sold the property, recovering this expense is comparable to recuperating the expense for all the kitchen and bath updates you did.

Additionally, it isn't difficult to be eligible for a hard money mortgage, regardless if your credit rating is not that extraordinary. Rather than focusing exclusively on the person's credit score or source of income, hard money lenders, who could be a privately owned company or an individual person, authorize a loan as a result of evaluating the property value, ease of marketability, where it is located, and the likelihood of getting back their capital if they have to foreclose the loan. How much a borrower can put down beforehand towards the home, his past real estate experience, and price range of comparative properties in the area are other factors that go into analyzing a borrower's qualification for a hard money real estate loan.

So any time you come across a good and worthwhile investment opportunity, feel comfortable knowing you will have a hard money lender in , prepared to loan you the cash you may need. Complete the form on this page or give us a call to discuss the project you have in mind.

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Investment property loans only please, no primary residences at this time.