Hard Money Loans in Houma
Imagine you've run into this truly good deal for a fix and flip property in an ideal neighborhood, and you happen to be either a skilled real estate investor or a first-timer who wants to try out flipping houses. A majority of people know that knowledgeable professional flippers, like Tarek and Christina El Moussa who star in HGTV's reality flipping series, Fix or Flop, are able to earn a typical profit of forty to fifty thousand dollars on their flips. And indeed, they are helped in a major way as a result of their professional experience, auction expertise and familiarity with hard money loans. Still, your rehab and remodeling knowledge isn't that bad either — besides, you have already found the right building contractor to take on this job.
But financing is often a different issue altogether. A standard lender, like for example a bank, takes no less than 1 to 2 months to authorize the financing and provide the cash. Given that home owners give preference to a fast closing, it may be best to start seeking out some other funding options.
With banks adding tougher loan guidelines in recent times, it has become much harder for a self-employed person to obtain a mortgage loan, particularly if his credit rating is not optimal. So do you have to stop trying and abandon your dream to get into the real estate market? Absolutely not, because you always have the Houma hard money loan option.
A hard money home loan in Houma can provide what's considered vital to most real estate sales — a quick closing of only a couple of weeks and at many times even less. Furthermore, hard money lenders can do lending up to 70% LTV of the property value, as assessed by a licensed third-party evaluator. With loan rates starting out near 10%, hard money real estate loans may look, at first, to be higher priced compared to traditional bank lending products. But the time frames of these loans are much shorter, making the rate much less significant. The price of such short-term loans should be considered on par with every other expenditure that you would encounter during the project. Right after you remodel and unload the property, recovering this expense is the same as recuperating the expense for home appliances you installed in the home.
Besides, hard money mortgages are not hard to qualify for, regardless if you have got poor credit. The borrower's credit score will not be the lone determining factor for Houma hard money lenders — additionally, they evaluate the home, its market value, its location, and its capacity to earn back their financial commitment if everything does not work out as planned. Other variables that influence an applicant's approval for a hard money real estate loan can include what amount of money he is in a position to put towards a down payment, his former experience being a real estate investor, and selling price of similar, recently sold homes in the area.
Locating a hard money lender in Houma to fund your flipping business is not difficult, assuming that the opportunity in front of you is promising and boasts a good prospect for returns. Complete the contact form on this page or give us a call to discuss your property or properties.
A loan specialist will be in touch shortly