Hard Money Loans in Hapeville
An outstanding deal on a fix and flip property located in a nice subdivision shows up out of the blue — seems so good that it is hard to believe. Everybody knows that knowledgeable professional flippers, along the lines of Tarek and Christina El Moussa who star in HGTV's reality home flipping show, Fix or Flop, can earn a typical profit of forty to fifty thousand dollars on their flips. It goes without saying their rehabbing experience, knowledge of hard money loans, expertise in their housing market, and auction skills have been major factors to their success. With that being said, you've also been cultivating your rehab and renovation skills, have a building contractor arranged and are certain that you can do a stellar job for this home.
But where do you find the necessary funding for home flipping? When you go after a conventional loan from the bank, you will need to wait around roughly 4-8 weeks up until the time the mortgage is authorized and your funding is readily available. With all the home owners looking for a fast closing, that does not appear like a good option to you in the slightest.
With banks establishing harder loan requirements in recent times, it is now more difficult for a self-employed individual to obtain a home loan, especially when his credit score is not perfect. So must you give up and forego your ambition to get into the real estate market? Certainly not, seeing as you always have the Hapeville hard money loan option.
A hard money home loan in Hapeville can provide what is regarded as crucial to many real estate sales — a fast closing of just a couple of weeks and at times even less. Additionally, loans can be made up to 70% loan-to-value of the "as is" valuation, as deemed by a licensed appraiser. On the surface, hard money real estate loans, with starting lending rates of 10%, could be seen as higher in price than bank financing. But usually, the interest rate is not as useful a measure for these loans, simply because they will never be long-term loans. The price tag on such short-term loans ought to be viewed much like every other cost that you might encounter during the project. And as soon as you have finally sold the house, recovering this expense is identical to recovering the expense for all the bathroom updates you did.
Apart from this, hard money mortgages are not difficult to qualify for, even in the event you have got bad credit. Hapeville hard money lenders don't approve a loan solely on the basis of the customer's credit score — instead they will evaluate the property or home, its location and value, and the home's capability to pay back the financing independent of the borrower. Additional factors that influence a borrower's acceptance for a hard money real estate loan include the amount he is able to put into a down payment, his past experience being a real estate investor, and price of comparable, recently sold homes in the neighborhood.
So if you have stumbled upon an excellent real estate opportunity with a significant potential for returns, you've also found yourself a hard money lender in Hapeville who is prepared to provide funding for your rehab ventures. Submit the form on this page or give us a call to discuss your project.
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