Hard Money Loans in Highland Village
There's this amazing opportunity to rehab and flip this nice outdated property or home in a fantastic area and it looks a lot like the one you have been eagerly waiting on for quite a while. Everybody knows that knowledgeable professional flippers, such as Tarek and Christina El Moussa from HGTV's reality home flipping show, Fix or Flop, are able to turn an average profit of $40,000 to $50,000 on their flips. Of course, you also are aware that their results can be attributed to the fact that they are professionals, are knowledgeable in hard money loans, they know the market quite well and furthermore, they are good at working a public auction for getting a good price. On the other hand, you're assured that your impressive rehab and remodeling knowledge will help you do a superb job on this house — additionally, you already have arranged to have one of the best general contractors in the business to handle the job.
But how can you obtain the needed capital for flipping? If you go after a regular bank loan, you will need to wait roughly 4-8 weeks up until the time the mortgage loan is authorized and the funds are ready. Due to the fact the sellers are seeking a fast closing, that doesn't appear like a great idea to you at all.
Furthermore, if you have a less-than-perfect credit score or do not receive a regular source of income, it can be harder to obtain bank financing, with the tougher loan guidelines banks have issued of late. So should you stop trying and forego your ambition to venture into fix and flips? By no means, due to the fact you can always use the Highland Village hard money loan approach to pay for your home flipping project.
A hard money home loan in Highland Village gives you what is viewed as imperative to many real estate sales — a very fast closing of only a 2-3 weeks and oftentimes less. Furthermore, hard money lenders are able to do funding up to 70% LTV of the home's valuation, as calculated by a credentialed third-party evaluator. With the interest rates starting around 10%, hard money real estate loans may look, initially, to be more costly in comparison with conventional bank financing. But usually, the lending rate isn't as useful a measure for these loans, because they aren't long-term loans. As it pertains to short-term loans of 1 or 2 years or even less, you should look at them identical to any sort of other expense for the project. And when you have finally sold the property, recovering this expense is the exact same as recouping the expense for the bathroom upgrades you did.
Aside from that, hard money mortgages are not difficult to qualify for, even if you have a low credit score. The customer's credit score isn't the single determining factor for Highland Village hard money lenders — they also consider the property, what is it valued at, where it is located, and its ability to bring back their financial commitment if things should not go as planned. On top of that, if the borrower can demonstrate past experience in similar real estate endeavors, can put down cash towards the down payment, and the price of comparative properties in the vicinity works to his benefit, he has an excellent chance of being approved to get a hard money real estate loan.
So in case you have stumbled upon a really great home to flip with a significant chance of returns, you've also discovered a hard money lender in Highland Village that's happy to provide funding for your fix and flip venture. Submit the form on this page or give us a call and let's talk about your property or properties.
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