Hard Money Loans in Harahan
A fantastic buy on a fix and flip property located in a very good neighborhood all of a sudden shows up — seems so good that it is hard to believe. Expert property flippers, such as the young couple on Flip or Flop, HGTV's reality flipping series, are able to haul in a gain of forty to fifty grand on average. Of course, you also understand that their successes are credited to the fact that they're experts, are well versed in hard money loans, they know market trends really well and furthermore, they are good at working an auction to purchase their houses at a good deal. On the other hand, you're convinced that your first class rehab and renovation talents will enable you to do a quality job for this home — what's more, you already have arranged to have one of the finest building contractors in the area to take care of this project.
But financing is usually a different problem altogether. Should you opt for an ordinary loan from the bank, you will wind up waiting around somewhere around 1 to 2 months up until the loan is approved and your funding is ready. So if you're wishing for a fast closing, you must be aware that this may set you back by a couple of weeks, making you lose out on the home.
To add to it, banks have already been tightening their lending standards as of late, rendering it more hard for someone to get a traditional home loan if their credit situation is not perfect or he does not have a consistent salaried job. So should you admit defeat and forego your dream to venture off into fix and flips? Under no circumstances, especially while Harahan hard money loans can help you accomplish many amazing things in the real estate world.
A hard money home loan in Harahan provides you with what is possibly most crucial to real estate investors — a quick closing in as few as 14 days. Also, hard money lenders are capable of doing loans up to 70% LTV of the home value, as estimated by a credentialed third-party evaluation. With the interest rates starting out around 10%, hard money real estate loans may seem, at first, to be more costly compared to traditional bank loans. But the term lengths for these loans tend to be much shorter, making the rate less significant. Short-term loans of a couple months to a handful of years are best thought of as cost of capital, similar to all other costs associated with a project. And once you've turned the home, recouping this expense is identical to recouping the expense for the bathroom or other improvements you did.
Apart from this, hard money mortgages are not difficult to qualify for, even in the event you have got very bad credit. The customer's credit score isn't the lone deciding factor for Harahan hard money lenders — they also consider the property, its market value, where it is located, and its capacity to earn back their investment if things should not go as planned. How much a person can put down in advance for the property or home, how much practical experience he has in real estate investing, and price range of comparative properties in the vicinity are various other details that go into establishing an applicant's suitability for a hard money real estate loan.
So any time you run into a very good and lucrative investment opportunity, rest assured you'll have a hard money lender in Harahan, able to loan you the money you'll need. Submit the form on this page or give us a call and let's discuss the project you have in mind.
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