Hard Money Loans in Jennings
Suppose you've encountered this really great deal on a fix and flip property in a terrific neighborhood, and you're either a seasoned real estate investor or a first-timer who wants to try his hand at flipping. Professional house flippers, similar to the young couple on Flip or Flop, HGTV's reality flipping show, are capable of earning a profit of $40-$50k on a consistent basis. Undoubtedly, you also realize that their great results are credited to the fact that they are professionals, are knowledgeable in hard money loans, they understand market trends really well and in addition, they are good at working an auction for getting a reasonable price. Nonetheless, your rehab and remodeling knowledge isn't bad either — aside from that, you have already located an ideal general contractor to start the project.
But how exactly can real estate investors obtain capital? In the event you approach a regular lending institution, much like a bank for a mortgage loan, it can take, at the very least, 30-60 days for your acceptance to come through and your money to be accessible. Since most home owners would rather have a fast closing, you might want to begin seeking out other financing alternatives.
With banks bringing in tougher loan requirements in the past several years, it's become tougher for a self-employed person to find a home loan, especially when his credit score is not flawless. So does this mean you are without an option, but to give up your ambition of venturing into the fix and flip business? Not at all, particularly when Jennings hard money loans enable you to realize great things in the real estate market.
If you should apply for a hard money home loan in Jennings, you'll get what's possibly most vital to real estate transactions throughout the country — a quick closing of about two weeks. Aside from that, loans are made up to 70% loan-to-value of the "as is" house's valuation, as deemed by a professional appraiser. With lending rates starting off at about 10%, hard money real estate loans might seem, at first glance, to be more costly when compared with conventional bank loans. But the term lengths for these loans are quite shorter, which means the rate is less significant. As it pertains to short-term loans of a few years or even less, you should think about them the same as you would for any other expenditure for the project. And as soon as you have sold the home, recovering this expense is comparable to recovering the expense for all the bathroom upgrades you did.
Moreover, even someone with low credit will be able to qualify for a hard money mortgage. The borrower's credit score is not the lone determining factor for Jennings hard money lenders — they also look at the house, its market valuation, where it is located, and its capacity to earn back their investment if things should not work out as intended. Adding to that, if the applicant can demonstrate past experience in similar real estate ventures, can put down cash towards a down payment, and the value of comparable homes in the vicinity works in his favor, he has a good shot of qualifying to obtain a hard money real estate loan.
So in case you have found a wonderful real estate opportunity with a huge potential for returns, you have also found yourself a hard money lender in Jennings who's willing to finance your fix and flip ventures. Fill out the form on this page or get in touch with us via phone and let's discuss your project.
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