Hard Money Loans in Houston
Imagine you've run into this truly good deal on a fix and flip property you found in a terrific location, and you are either a skilled real estate investor or a newbie who hopes to try his hand at flipping. Many people know that capable professional flippers, like Tarek and Christina El Moussa from HGTV's reality flipping show, Fix or Flop, are able to turn a typical profit margin of $40,000 to $50,000 on their home projects. No need to explain that their past experiences rehabbing, knowledge of hard money loans, familiarity with the market, and auction skills have played a significant role in their success. With that being said, you have recently been brushing up your rehab and renovation skills, have got a licensed contractor ready for the project and are confident that you can do a stellar job for this home.
But capital can be a different question entirely. Should you opt for a traditional bank loan, you will wind up waiting around roughly 1 to 2 months before the mortgage loan is approved and the funding is ready to go. So if you will be wishing for a fast closing, you have to realize that this will cost you a few weeks, causing you to miss out on the opportunity.
As well as this, for those who have an unfavorable credit situation or do not receive a routine source of income, it is usually harder for you to obtain a bank loan, with the tighter loan guidelines banks have put in place of late. So will a shortage of funds stop you from sticking with your aspirations? Never, due to the fact you can always go the Houston hard money loan route to pay for your home flipping project.
A hard money home loan in Houston offers you what is considered essential to many real estate sales — a quick closing of just a couple of weeks and at many times less. Also, hard money lenders are able to do funding up to 70% LTV of the home's valuation, as assessed by a certified third-party evaluation. At first glance, hard money real estate loans, with starting lending rates of 10%, seem to be more costly than bank loans. But the lengths of these loans are fairly short, making the rate far less significant. When it comes to short-term loans of a handful of years or even less, you should think of them similar to any other expenditure for the project. And once you have turned the property or home, recovering this expense is the exact same as recouping the expense for the kitchen and bath improvements you performed.
Moreover, even a person with weak credit can easily be eligible for a hard money mortgage. The customer's credit score will not be the exclusive determining factor for Houston hard money lenders — additionally, they look at the home, what is it valued at, its location, and its ability to return their financial commitment if everything does not go as planned. On top of this, if the person have proven experience in similar real estate projects, can put down money for a down payment, and the cost of comparative properties in the neighborhood works to his benefit, he has got an excellent shot of qualifying for a hard money real estate loan.
Locating a hard money lender in Houston to fund your flipping business is not very hard, so long as the opportunity before you is promising and offers a good potential for returns. Complete the contact form or call us to discuss your property.
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