Hard Money Loans in Harlingen
Suppose you've stumbled upon this excellent bargain for a fix and flip property located in an ideal neighborhood, and you happen to be either a seasoned real estate investor or a first-timer who wants to try out flipping houses. Professional residential home flippers, much like the young married couple on Flip or Flop, HGTV's reality flipping show, are able to generate a gain of $40-$50k on a consistent basis. It goes without saying their rehabbing experience, understanding of hard money loans, familiarity with the housing market, and auction skills have played a significant part in their results. Nevertheless, you are certain that your superb rehab and remodeling talents will assist you to do a great job on this property — in addition, you've already arranged to have one of the most recommended building contractors in town to take on the job.
But money is often a separate question altogether. Should you opt for a regular loan via a bank, you will end up waiting approximately one to two months until the financing is authorized and your funding is readily available. With all the sellers wanting a fast closing, that does not appear to be a wise idea to you at all.
On top of this, banks have already been tightening up their lending requirements in recent years, rendering it more hard for someone to get a regular home loan if their credit circumstances are not perfect or he does not possess a consistent salaried profession. So does this mean you are without an option, but to drop your dream of getting into rehabbing? Certainly not, because you also have the Harlingen hard money loan option.
A hard money home loan in Harlingen provides what is viewed as imperative to many real estate sales — a quick closing of only a couple of weeks and oftentimes even less. Furthermore, hard money lenders will often consent to loans up to 70% LTV of the property value, as identified by a credentialed third-party evaluator. A number of people regard hard money real estate loans to be higher in price than standard loans, since the lending rates for such loans generally start out at 10%. But the term lengths for these loans are fairly short, which makes the rate much less significant. The price of such short-term loans should be considered on par with any other expense that you would need to meet for the project. And as soon as you've flipped the property, recouping this expense is identical to recouping the expense for the kitchen and bath improvements you performed.
Besides, hard money mortgages are not difficult to qualify for, even when you have very bad credit. Harlingen hard money lenders don't approve a loan solely according to the borrower's credit score — instead they also assess the property or home, where it is located and what it is worth, and the property's capability to pay back the loan independent of the applicant. Additional variables that impact a customer's eligibility for a hard money real estate loan can include the amount he is able to put into a down payment, his previous experience as a real estate investor, and selling price of comparative, just recently sold properties nearby.
Finding a hard money lender in Harlingen to help with expenses for your real estate project is not very hard, provided that the opportunity that lies before you is promising and possesses the right prospect for returns. Enter your info into the form on this page or get in touch with us via phone to discuss your property or properties.
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