Hard Money Loans in Hahira
An outstanding buy on a fix and flip property located in a good subdivision all of a sudden shows up — seems so good that it is hard to believe. Everyone knows that expert professional flippers, like Tarek and Christina El Moussa from HGTV's reality flipping program, Fix or Flop, can make a typical profit margin of $40,000 to $50,000 on their home projects. Naturally, you also recognize that their results are due to the fact that they're industry experts, are knowledgeable in hard money loans, they understand market trends quite well and in addition, they are good at working an auction for getting an appropriate deal. On the other hand, you're assured that your impressive rehab and renovation talents will enable you to do a great job on the project — what's more, you've already arranged to have one of the best building contractors in town to take care of the project.
But financing is often a different issue altogether. For those who get in touch with a regular lender, like a bank for financing, it likely will take a minimum of four to eight weeks for the approval to come through and the funds to be given out. Because most home owners give preference to a fast closing, you might want to start searching for additional financing options.
As well as this, should you have an unfavorable credit rating or don't receive a routine source of income, it is usually more difficult for you to qualify for a bank loan, considering the tighter loan requirements banks have issued recently. So should you stop trying and abandon your ambition to venture into real estate? Absolutely not, seeing as you also have the Hahira hard money loan option.
A hard money home loan in Hahira provides what is perhaps most sought after by real estate investors — a fast closing time of as few as two weeks. Additionally, loans are made up to 70% loan-to-value of the as-is property's valuation, as established by a qualified appraiser. With the loan rates starting around 10%, hard money real estate loans might appear, initially, to be more costly as compared with traditional bank financing. But when you appreciate that these are not long-term loans, the rate of interest tends to be misleading. Short-term loans of several months to a few years are best thought of as cost of capital, the same as any other expense associated with a project. And once you have finally flipped the house, recouping this expense is identical to recouping the expense for the bathroom improvements you performed.
In addition, even someone with bad credit can still be eligible for a hard money mortgage. Hahira hard money lenders don't take on a loan strictly judging by the borrower's credit score — rather they will assess the property or home, its location and value, and the property's capacity to pay back the loan without the help of the person. Other criteria that affect an applicant's acceptance for a hard money real estate loan include how much he is in a position to put into a down payment, his prior experience as a real estate investor, and price range of similar, just recently sold properties in the neighborhood.
Searching for a hard money lender in Hahira to finance your fix and flip endeavor is not hard, as long as the opportunity in front of you is promising and boasts a strong potential for returns. Submit the form or call us and let's talk about your project.
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