Hard Money Loans in Huntsville
Suppose you've come across this excellent deal for a fix and flip property you found in a terrific neighborhood, and you happen to be either a seasoned real estate investor or a first-timer who is looking to try out flipping homes. Most folks know that capable professional flippers, such as Tarek and Christina El Moussa who do HGTV's reality home flipping program, Fix or Flop, are able to make a typical profit margin of forty to fifty thousand dollars on their flips. Naturally, you also realize that their results can be attributed to the fact that they're professionals, are proficient in hard money loans, they know the marketplace really well and furthermore, they are good at working an auction to buy their homes at a good deal. Still, your rehab and renovation skills aren't bad either — besides, you have already found an ideal building contractor to take on the home.
But how can you get the necessary capital for flipping? For those who approach a common lender, like a bank for a loan, it's in all likelihood going to take, at a minimum, 4-8 weeks for the approval to come through and the money to be distributed. So if you're anticipating a fast closing, you must understand or know that this could set you back by a couple of weeks, making you miss out on the opportunity.
With banks introducing more challenging loan standards in the past several years, it has become more challenging for a self-employed individual to obtain a home loan, especially when his credit score is not flawless. So will a lack of funding stop you from sticking with your ambitions? Certainly not, considering that you could always use the Huntsville hard money loan approach to fund your home flipping project.
A hard money home loan in Huntsville provides what's considered essential to most real estate deals — a quick closing of just a couple of weeks and at times even less. Additionally, loans are made up to 70% loan-to-value of the "as is" property value, as deemed by a licensed appraiser. With interest rates starting near 10%, hard money real estate loans may look, at first glance, to be higher in price as compared with traditional bank financing. But the time frames of these loans tend to be comparatively shorter, making the interest rate much less significant. As it pertains to short-term loans of a handful of years or less, you should think of them similar to every other expenditure for the project. After you fix up and sell off the property, recouping this expense is no different than recuperating the money you spent for stainless steel appliances you installed in the property.
Apart from this, hard money mortgages are easy qualifying, whether or not you have got very bad credit. The borrower's credit score is not the sole deciding factor for Huntsville hard money lenders — they also analyze the piece of real estate, what is it valued at, where it is located, and its capacity to return their investment if everything does not go as intended. The total amount that a borrower can put down beforehand towards the home, how much practical experience he has in real estate investing, and price range of comparable properties in the area are other factors that go into ascertaining an applicant's eligibility for a hard money real estate loan.
Finding a hard money lender in Huntsville to fund your flipping business is not difficult, so long as the opportunity that lies before you is promising and offers the right prospect for returns. Complete the form or get in touch with us via phone to talk about your property.
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