Hard Money Loans in Houston
There is this outstanding possibility for renovating and flipping this nice out of date home in a good area and it seems a lot like the deal you've been expecting for quite some time. Everybody knows that expert professional flippers, like Tarek and Christina El Moussa who star in HGTV's reality home flipping series, Fix or Flop, are able to make an average profit of forty to fifty thousand dollars when they flip properties. It's fair to say their past experiences rehabbing, knowledge of hard money loans, expertise in their market, and auction talents have been major factors to their results. Nonetheless, your rehab and renovation knowledge isn't bad either — besides, you have already found a suitable licensed contractor to handle this home.
But how can you find the needed financing for flipping? When you apply for a traditional bank loan, you will wind up waiting roughly 4-8 weeks until the loan is approved and your funds are accessible. With the home owners wanting a fast closing, that does not appear to be a good option to you in the slightest.
To add to it, banks have been tightening up their lending requirements as of late, which makes it tough for people to get a typical loan if their credit rating is not perfect or he doesn't have a regular salaried job. So does that leave you with no option, but to drop your ambition of venturing into rehabbing? By no means, because you can always go the Houston hard money loan route to pay for your flipping project.
A hard money home loan in Houston promises what's probably most crucial to real estate investors — a fast closing in as little as 2 weeks. And additionally, loans can be done for up to 70% loan-to-value of the as-is home's valuation, as determined by a licensed appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, appear to be more costly than bank lending products. But once you understand these are not long-term home loans, the rate can be misleading. The price of such short-term loans should be viewed on par with any other cost that you will have to meet for the project. And as soon as you have finally sold the property or home, recouping this expense is identical to recuperating the expense for all the bathroom or other updates you did.
Aside from that, hard money mortgages are easy qualifying, even when you posses bad credit. Rather than focusing strictly on the applicant's credit score or wages, Houston hard money lenders, who can be a private company or an individual, say yes to a loan as a result of evaluating the property value, its salability, its location, and the possibility of getting back their money if they have to foreclose the loan. The amount that an individual can put down beforehand for the property or home, how much experience he has in real estate investing, and price range of comparable properties in the area are various other factors that go into analyzing an individual's suitability for a hard money real estate loan.
Finding a hard money lender in Houston to finance your flipping business is not very hard, assuming that the opportunity in front of you is promising and offers a strong prospect for returns. Enter your info into the contact form or call us to discuss the property or properties you have in mind.
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