Hard Money Loans in Helotes
Suppose you've encountered this excellent bargain for a fix and flip property you found in a great neighborhood, and you are either a seasoned real estate investor or a first-timer who hopes to try out flipping houses. Professional house flippers, much like the young couple on Flip or Flop, HGTV's reality flipping program, are able to bring in a profit of forty to fifty grand as an average on more than one occassion. Undoubtedly, you also realize that their successes can be attributed to the fact that they are experts, are knowledgeable in hard money loans, they know the marketplace really well and furthermore, they know how to work an auction for getting a reasonable price. With that being said, you have recently been developing your rehab and renovation knowledge, have got a building contractor lined up and are certain that you can do a stellar job on this house.
But how do you get the necessary financing for flipping? When you opt for a conventional loan from the bank, you will have to wait around roughly 30-60 days up until the time the money is approved and the funds are accessible. Due to the fact all the sellers are looking for a fast closing, that doesn't seem like a good option to you at all.
On top of this, banks have already been tightening their lending criteria as of late, making it difficult for someone to obtain an ordinary loan if their credit situation is not flawless or he is lacking a regular salaried profession. So will a shortage of financing prevent you from sticking to your aspirations? Most certainly not, seeing as you always have the Helotes hard money loan alternative.
A hard money home loan in Helotes boasts what is perhaps most important to real estate investors — a very fast closing time period of as little as a few weeks. Besides that, hard money lenders can approve funding up to 70% LTV of the property's valuation, as established by a credentialed third-party evaluator. A number of people believe hard money real estate loans to be costlier than regular financing, because the interest rates of such loans generally start off at 10%. But usually, the lending rate isn't as useful a measure for these loans, simply because they will never be long-term financing. As it pertains to short-term loans of a handful of years or even less, you should look at them much like you would other expenses for your project. And when you've flipped the house, recovering this expense is comparable to recouping the expense for the kitchen and bath updates you performed.
What's more, it isn't difficult to qualify for a hard money mortgage, regardless of whether your credit rating is not that impressive. Helotes hard money lenders don't approve a loan solely judging by the customer's credit score — instead they will look at the property, its location and value, and the property's ability to pay back the loan on its own. Adding to that, if the applicant have proven experience in similar real estate ventures, can place down cash for a down payment, and the value of equivalent homes in the area works to his benefit, he will have a good likelihood of being eligible to get a hard money real estate loan.
If you happen to have stumbled upon a wonderful real estate opportunity with a huge probability of returns, you have also discovered a hard money lender in Helotes that is happy to provide financing for your fix and flip venture. Enter your info into the contact form or call us and let's discuss your project.
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