Hard Money Loans in Hampton
A remarkable deal on a fix and flip opportunity located in an excellent subdivision shows up out of the blue — seems so good that it is hard to believe. Professional home flippers, such as the young couple on Flip or Flop, HGTV's reality flipping show, are able to generate a profit of $40-$50k on average. No need to explain that their past experiences rehabbing, understanding of hard money loans, expertise in their housing market, and auction talents have been large factors to their success. Having said that, you've recently been cultivating your rehab and remodeling skills, have got a licensed contractor ready to go and are positive that you can do an impressive job for this home.
But how can real estate investors obtain funding? If you approach a common lender, like a bank for financing, it's in all likelihood going to take, at the very least, 30-60 days for the acceptance to be completed and your money to be sent out. Because most sellers favor a fast closing, it may be best to begin looking for some other funding options.
To add to it, banks have been tightening up their lending requirements in recent times, which makes it difficult for people to get a conventional home loan if their credit score is not perfect or he is lacking a consistent salaried job. So does this mean you are without an option, but to abandon your dream to venture into home flipping? Not at all, especially when Hampton hard money loans can help you accomplish great things in the real estate world.
A hard money home loan in Hampton provides what is possibly most sought after by real estate investors — a quick closing time period of as few as fourteen days. Furthermore, hard money lenders will often consent to lending up to 70% LTV of the home's valuation, as determined by a credentialed third-party evaluation. On the surface, hard money real estate loans, with starting interest rates of 10%, appear to be more pricey than bank loans. But in reality, the rate of interest is not as pertinent for these loans, given that they are not long-term loans. Short-term loans of a couple of months to a handful of years are best understood as cost of capital, very much like any other financial outlay involved with a project. After you renovate and unload the property, recuperating this expense is the same as recovering the money you spent for new kitchen appliances you installed in the place.
Furthermore, even an individual with weak credit can still qualify for a hard money mortgage. The borrower's credit score will not be the sole determining factor for Hampton hard money lenders — they also evaluate the property, how much it is worth, its location, and its potential to earn back their financial commitment if things do not go as planned. Adding to this, if the applicant can demonstrate past experience in comparable real estate ventures, can put down cash towards a down payment, and the value of similar houses in the neighborhood works to his benefit, he will have a very good shot of qualifying to obtain a hard money real estate loan.
So in case you have stumbled upon a really good home to flip with a high potential for returns, you have also discovered a hard money lender in Hampton who's ready to fund your rehab projects. Complete the form or give us a call and let's talk about the property or properties you have in mind.
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