Hard Money Loans in Hays
Suppose that you've stumbled upon this really great bargain for a fix and flip property you found in an ideal location, and you happen to be either a skilled real estate investor or a newbie who really wants to try out flipping houses. You've heard that veteran home flippers, such as the married couple on HGTV's Flip or Flop, enjoy an impressive average profit near $40,000 – $50,000. And yes, they are aided in a big way via their professional experience, auction abilities and familiarity with hard money loans. On the other hand, you're certain that your first class rehab and remodeling skills will help you do a quality job for this property — in addition, you already have arranged to have one of the most sought after building contractors in the business to take on the project.
But funding can be a separate issue entirely. A traditional lender, for instance a bank, takes at the very least one to two months to authorize the financing and provide the money. So if you will be anticipating a fast closing, you must be aware that this could cost you a few weeks, causing you to lose out on the sale.
Moreover, for those who have an unfavorable credit situation or do not receive a consistent income source, it is usually more difficult to qualify for bank financing, with the more stringent loan requirements banks have issued as of late. So must you stop trying and forego your dream to venture off into real estate? Never, on the grounds that you can always go the Hays hard money loan route to finance your home renovating project.
A hard money home loan in Hays gives you what's perhaps most sought after by real estate investors — a quick closing time of as few as a few weeks. Aside from that, financing can be made up to 70% loan-to-value of the "as is" property's valuation, as determined by a qualified appraiser. With lending rates starting off at about 10%, hard money real estate loans may appear, at first glance, to be more costly in comparison with traditional bank lending products. But the time frames of these loans tend to be relatively shorter, which means the interest rate is much less important. The cost of such short-term loans should be considered on par with any other expenditure that you will have to meet for the project. And once you have turned the house, recouping this expense is identical to recouping the expense for all the bathroom or other updates you performed.
Additionally, it's easy to be eligible for a hard money mortgage, even when your credit rating is not that superb. The applicant's credit score is not the sole determining factor for Hays hard money lenders — they also examine the home, its market value, its location, and its capacity to earn back their financial commitment if things do not go as planned. How much of their own money a person can put down beforehand for the property, how much experience he has in real estate investments, and selling price of equivalent properties in the neighborhood are additional factors that go into determining a borrower's eligibility for a hard money real estate loan.
Finding a hard money lender in Hays to cover expenses for your flipping business is not very hard, as long as the opportunity before you is promising and has the right potential for returns. Enter your info into the contact form on this page or get in touch with us via phone and let's talk about your project.
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