Hard Money Loans in Homewood
An outstanding bargain on a fix and flip property located in a nice area of the city shows up out of the blue — seems too good to be true. Everybody knows that knowledgeable professional flippers, such as Tarek and Christina El Moussa who star in HGTV's reality flipping series, Fix or Flop, can earn an average profit of $40,000 to $50,000 on their flips. And sure, they are aided in a major way due to their professional experience, auction skills and familiarity with hard money loans. With that being said, you have recently been cultivating your rehab and remodeling knowledge, have a licensed contractor ready for the project and are certain that you're capable of doing a great job on this home.
But how do you get the necessary capital for home flipping? If you opt for a traditional loan from the bank, you will end up waiting around approximately one to two months up until the money is authorized and the money is available. Since most sellers prefer a fast closing, you might want to start searching for other financing alternatives.
With banks bringing in tougher loan criteria in the past few years, it has become harder for a self-employed person to find a mortgage loan, especially when his credit score is not perfect. So must you admit defeat and abandon your dream to get into fix and flips? Certainly not, on the grounds that you could always use the Homewood hard money loan approach to pay for your home flipping project.
A hard money home loan in Homewood offers you what's regarded as essential to many real estate sales — a fast closing of just a couple of weeks and oftentimes less. Besides that, hard money lenders can do funding up to 70% LTV of the home value, as determined by a licensed third-party evaluator. Some people believe hard money real estate loans to be higher in price than ordinary loans, considering interest rates of such loans ordinarily start out at 10%. But the lengths of these loans tend to be rather short, which means the interest rate is less significant. The price of such short-term loans should be considered much like every other expenditure that you will have to meet pertaining to the project. Right after you rehab and resell the home, recovering this expense is the same as recouping the money you spent for stainless steel appliances you put in the property.
Apart from this, hard money mortgages are easy qualifying, even if you have very bad credit. Homewood hard money lenders do not take on a loan solely according to the customer's credit score — rather they also examine the home, its location and value, and the property's capacity to pay back the loan on its own. Additional variables that have an impact on a borrower's approval for a hard money real estate loan can include how much money he is in a position to put towards a down payment, his former experience as a real estate investor, and price of comparative, fairly recently sold homes in the vicinity.
Searching for a hard money lender in Homewood to help with expenses for your flipping business is not hard, provided that the opportunity that lies before you is promising and possesses the right potential for returns. Enter your info into the form on this page or give us a call and let's talk about the property you have in mind.
A loan specialist will be in touch shortly