Hard Money Loans in Ingleside
Suppose that you've run across this really great bargain on a fix and flip property in a terrific neighborhood, and you're either an experienced real estate investor or a first-timer who really wants to try out flipping homes. You may have heard that veteran property flippers, much like the couple on HGTV's Flip or Flop, turn an impressive average profit of around forty to fifty thousand dollars. Of course, you also understand that their great results are credited to the fact that they are professionals, are well versed in hard money loans, they understand the market quite well and in addition, they know how to work a public auction for getting a good deal. However, you're convinced that your superb rehab and remodeling skills will assist you to do an outstanding job for this project — in addition, you already have arranged to have one of the most recommended general contractors in the area to take on this project.
But funding is usually a different question entirely. When you approach a customary lender, like a bank for financing, it is very likely going to take no less than 4-8 weeks for your acceptance to come through and your funds to be distributed. So if you're anticipating a fast closing, you need to understand that this may set you back by a few weeks, making you miss out on the sale.
To add to it, banks have been tightening up their lending requirements in recent times, which makes it hard for people to get a typical home loan if their credit rating is not flawless or he does not have a regular salaried occupation. So does this leave you with no other option, but to abandon your aspiration of venturing into the fix and flip business? By no means, considering that you could always go the Ingleside hard money loan route to pay for your rehab project.
A hard money home loan in Ingleside boasts what is perhaps most desired by real estate investors — a fast closing time period of as few as two weeks. Additionally, financing can be made up to 70% loan-to-value of the as-is house value, as calculated by a professional appraiser. With lending rates starting off at about 10%, hard money real estate loans may seem, at first glance, to be higher priced when compared with traditional bank financing. But if you consider these are not long-term mortgage loans, the rate can be misleading. The price tag on such short-term loans should be viewed on par with every other expenditure that you might encounter during the project. And as soon as you have finally flipped the property, recuperating this expense is comparable to recuperating the expense for all the kitchen and bath improvements you did.
Also, it isn't difficult to be eligible for a a hard money mortgage, even in the event your credit situation is not that impressive. Instead of focusing strictly on the applicant's credit score or net income, Ingleside hard money lenders, who may be a privately owned company or an individual person, say yes to a loan as a result of evaluating the property value, its marketability, where it is located, and the possibility of recovering their capital should they have to foreclose the loan. Additional criteria that have an impact on a borrower's eligibility for a hard money real estate loan include how much he is able to put towards a down payment, his past experience being a real estate investor, and price range of similar, recently sold residences nearby.
So if you have found an excellent fixer-upper with a huge probability of returns, you've also discovered a hard money lender in Ingleside who's happy to fund your rehab projects. Fill out the contact form or give us a call and let's discuss your property or properties.
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