Hard Money Loans in Hueytown
Suppose you've stumbled upon this excellent bargain on a fix and flip property located in a terrific neighborhood, and you are either a seasoned real estate investor or a newbie who hopes to try out flipping homes. Professional property flippers, such as the young married couple on Flip or Flop, HGTV's reality flipping show, are able to bring in a profit of $40-$50k on a consistent basis. Of course, you also are aware that their great results can be attributed to the fact that they are industry experts, are knowledgeable in hard money loans, they understand the marketplace quite well and additionally, they know how to work an auction to buy their homes at a good price. Having said that, you have likewise been brushing up your rehab and renovation knowledge, have a very good licensed contractor ready to go and are confident that you're capable of doing a great job for this house.
But how can you obtain the needed capital for flipping? A conventional lending institution, for instance a bank, takes no less than 1-2 months to authorize the mortgage and provide the monies. Because most home owners would rather have a fast closing, you might have to start looking for other financing options.
With banks introducing more challenging loan requirements in the last few years, it is now more difficult for a self-employed person to obtain a home loan, especially if his credit rating is not optimal. So do you have to give up and abandon your aspiration to venture into fix and flips? Not at all, especially while Hueytown hard money loans can help you accomplish great things in the real estate world.
A hard money home loan in Hueytown gives you what's viewed as vital to most real estate sales — a very fast closing of just a few weeks and at times even less. And additionally, financing can be made up to 70% loan-to-value of the "as is" house value, as established by a licensed appraiser. Some individuals believe hard money real estate loans to be costlier than customary loans, because the lending rates of such loans generally start out at 10%. But usually, the interest rate isn't as relevant for these loans, simply because they are not long-term financing. As it pertains to short-term loans of a few years or less, you should look at them the same as you might for any other expense for the project. After you renovate and sell the home, recovering this expense is just like recuperating the cost of the home appliances you placed into the house.
Besides, hard money mortgages are easy qualifying, even if you posses a bad credit score. Hueytown hard money lenders don't approve a loan exclusively based on the customer's credit score — instead they additionally look at the home, its value and location, and the home's capability to pay back the loan without the assistance of the borrower. How much a borrower can put down in advance for the house, how much experience he has in real estate investments, and selling price of comparative homes in the neighborhood are other factors that go into ascertaining a borrower's suitability for a hard money real estate loan.
Locating a hard money lender in Hueytown to finance your flipping business is not hard, so long as the opportunity that lies before you is promising and possesses a strong prospect for returns. Complete the form or get in touch with us via phone to talk about the property or properties you have in mind.
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