Hard Money Loans in Hunters Creek Village
An outstanding deal on a fix and flip opportunity in a good neighborhood all of a sudden shows up — sounds so good that it is difficult to believe. Everyone knows that knowledgeable professional flippers, like Tarek and Christina El Moussa from HGTV's reality home flipping show, Fix or Flop, are able to earn an average profit of forty to fifty thousand dollars on their flips. And yes, they are aided in a major way by their professional know-how, auction skills and knowledge of hard money loans. Nonetheless, your rehab and remodeling skills aren't that bad either — aside from that, you've already identified an ideal contractor to handle the home.
But money is a separate problem altogether. For those who apply for a conventional bank loan, you will need to wait around roughly 1-2 months before the financing is approved and the funds are available. So if you are looking for a fast closing, it's important to be aware that this could set you back by weeks, making you lose out on the opportunity.
With banks establishing more challenging loan standards in the recent past, it has become much harder for a self-employed individual to obtain a mortgage loan, especially if his credit circumstances are not perfect. So does this leave you with no other option, but to abandon your aspiration of getting into flipping? By no means, especially while Hunters Creek Village hard money loans will assist you to achieve many amazing things in real estate.
A hard money home loan in Hunters Creek Village provides what's considered imperative to most real estate sales — a very fast closing of just a couple of weeks and oftentimes even less. Also, hard money lenders frequently agree to lending up to 70% LTV of the property or home value, as identified by a licensed third-party appraiser. At first, hard money real estate loans, with starting interest rates of 10%, could be seen as higher priced than bank lending products. But once you understand these are not long-term home loans, the rate of interest can be misleading. As it pertains to short-term loans of one or two years or even less, you should look at them just like you would other expenditures for the project. And as soon as you've sold the property or home, recouping this expense is the exact same as recovering the expense for the bathroom upgrades you did.
Furthermore, even a person with bad credit can still be eligible for a hard money mortgage. The applicant's credit score will not be the lone determining factor for Hunters Creek Village hard money lenders — additionally, they evaluate the home, its market valuation, where it is located, and its capacity to earn back their investment if things do not go as intended. How much an applicant can put upfront for the property or home, how much experience he has in real estate investing, and price range of equivalent properties in the same area are additional factors that go into ascertaining a person's qualification for a hard money real estate loan.
Searching for a hard money lender in Hunters Creek Village to finance your fix and flip endeavor is not hard, so long as the opportunity that lies ahead of you is promising and has a strong prospect for returns. Enter your info into the contact form on this page or call us to discuss the property or properties you have in mind.
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