Hard Money Loans in Guymon
An incredible deal on a fix and flip property located in a good neighborhood all of a sudden shows up — seems so good that it is hard to believe. Many people know that capable professional flippers, such as Tarek and Christina El Moussa from HGTV's reality home flipping program, Fix or Flop, can generate a typical profit of $40,000 to $50,000 in their rehab business. Of course, you also recognize that their great results can be attributed to the fact that they're industry experts, are well versed in hard money loans, they know market trends really well and they also know how to work an auction for getting a reasonable deal. That said, you have recently been developing your rehab and renovation skills, have got a general contractor arranged and are positive that you're capable of doing a great job on this property.
But financing is a separate question altogether. If you go after a regular loan from the bank, you will need to wait approximately 30-60 days up until the mortgage is approved and the funding is ready. Given that home owners favor a fast closing, you might have to begin looking for other financing alternatives.
Furthermore, in case you have a sub-optimal credit rating or don't have a conventional source of income, it is usually more difficult for you to be eligible for a bank loan, with the more stringent loan criteria banks have introduced in recent times. So does that leave you with no option, but to give up your ambition of venturing into rehabbing? Never, considering that you could always use the Guymon hard money loan approach to fund your rehab project.
If you decide to put in an application for a hard money home loan in Guymon, you'll get what is probably most important to real estate offers throughout the country — a quick closing of around 2 weeks. Additionally, financing is made up to 70% loan-to-value of the as-is value, as calculated by a licensed appraiser. With lending rates starting out near 10%, hard money real estate loans may seem, at first, to be higher priced when compared with conventional bank lending products. But in reality, the lending rate is not as useful a measure for these loans, given that they will never be long-term financing. Short-term loans of a couple of months to a few years are best approached as cost of capital, much like all other expenses associated with a project. And when you have finally sold the property, recouping this expense is comparable to recouping the expense for all the bathroom updates you performed.
Additionally, it is easy to be eligible for a hard money mortgage, regardless if your credit rating is not that superb. Guymon hard money lenders don't take on a loan exclusively based on the borrower's credit score — rather they also look at the property or home, its value and location, and the property's ability to pay back the financing on its own. Adding to that, if the person have proven experience in similar real estate ventures, can place down money towards a down payment, and the value of comparable homes in the area works to his benefit, he stands a very good likelihood of being approved to obtain a hard money real estate loan.
So in the event you come across a good and lucrative flipping opportunity, feel comfortable knowing you will have a hard money lender in Guymon, willing to loan you the cash that you need. Enter your info into the form or get in touch with us via phone and let's discuss your property.
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