Hard Money Loans in Heflin

A fabulous buy on a fix and flip property in a good neighborhood all of a sudden shows up — sounds too good to be true. Everybody knows that capable professional flippers, such as Tarek and Christina El Moussa who star in HGTV's reality home flipping series, Fix or Flop, are able to make a typical profit margin of $40,000 to $50,000 on their home projects. No need to explain that their rehabbing experience, knowledge of hard money loans, expertise in their housing market, and auction talents have played a significant role in their success. Nevertheless, you're convinced that your impressive rehab and renovation knowledge will enable you to do a quality job on the property — furthermore, you already have arranged to have one of the finest building contractors in town to take care of this job.

But funding can be a different problem altogether. In the event you apply for a conventional loan via a bank, you will wind up waiting around somewhere around 1 to 2 months until the financing is approved and your funding is ready. Thus if you are expecting a fast closing, it's important for you to understand or know that this will cost you a couple of weeks, causing you to miss out on the opportunity.

With banks introducing more challenging loan standards in the past several years, it is now more difficult for a self-employed individual to obtain a mortgage loan, especially when his credit score is not flawless. So will a lack of financing stop you from sticking to your dream? By no means, because you can always go the hard money loan route to pay for your home flipping project.

A hard money home loan in offers what is viewed as vital to most real estate sales — a very fast closing of only a 2-3 weeks and oftentimes even less. Further, loans can be done for up to 70% loan-to-value of the "as is" valuation, as established by a professional appraiser. With the rates starting out at about 10%, hard money real estate loans may seem, at first, to be more costly as compared with conventional bank financing. But the lengths of these loans tend to be relatively short, which means the rate is less important. Short-term loans of several months to a handful of years are best looked at as cost of capital, the same as all other expenditures associated with a project. Right after you remodel and sell off the home, recovering this expense is the same as recuperating the cost of the new kitchen appliances you installed in the property.

Apart from this, hard money mortgages are not difficult to qualify for, whether or not you posses below-average credit. As an alternative for focusing primarily on the person's credit score or wages, hard money lenders, who may be a privately owned company or an individual, say yes to a loan after analyzing the property value, how easy it will be to market, where it is located, and the likelihood of recouping their capital should they have to foreclose the loan. Adding to that, if the borrower can demonstrate prior experience in equivalent real estate projects, can place down cash towards the down payment, and the price of comparable properties in the vicinity works in his favor, he has got a really good shot of qualifying for a hard money real estate loan.

Locating a hard money lender in to finance your flipping business is not very challenging, so long as the opportunity before you is promising and has the right prospect for returns. Enter your info into the form on this page or get in touch with us via phone to talk about the property you have in mind.

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Investment property loans only please, no primary residences at this time.