Hard Money Loans in Johnston City
Suppose you've encountered this really great deal for a fix and flip property in an ideal location, and you're either an experienced real estate investor or a first-timer who wants to try his hand at flipping. Expert property flippers, like the young couple on Flip or Flop, HGTV's reality flipping series, are capable of hauling in a profit of $40-$50k on a consistent basis. Naturally, you also recognize that their results are attributed to the fact that they're professionals, are well versed in hard money loans, they understand market trends quite well and additionally, they know how to work a public auction to purchase their properties at an appropriate price. Having said that, you have likewise been brushing up your rehab and remodeling knowledge, have a very good contractor ready to go and are confident that you can do a bang up job for this home.
But how can you obtain the needed capital for home flipping? When you approach a standard lending institution, such as a bank for a loan, it's likely going to take a minimum of four to eight weeks for the approval to be completed and your funds to be given out. Since the majority of home owners give preference to a fast closing, you might have to begin looking for other financing alternatives.
With banks establishing harder loan criteria in the past few years, it is much harder for a self-employed individual to obtain a home loan, particularly if his credit rating is not optimal. So should you stop trying and abandon your desire to embark into real estate? Certainly not, because you always have the Johnston City hard money loan option.
If you decide to opt for a hard money home loan in Johnston City, you're going to get what is possibly most important to real estate transactions throughout the country — a very fast closing of about fourteen days. Aside from that, loan amounts can be done for up to 70% loan-to-value of the "as is" property's valuation, as determined by a professional appraiser. With rates starting around 10%, hard money real estate loans might seem, at first, to be higher priced as compared with traditional bank lending products. But usually, the rate of interest is not as relevant for these loans, given that they are not long-term financing. The cost of such short-term loans should be looked at much like every other expense that you will encounter during the project. Right after you remodel and unload the home, recouping this expense is no different than recouping the one for home appliances you placed into the property.
Apart from this, hard money mortgages are easy qualifying, even if you posses a weak credit score. As an alternative for focusing solely on the applicant's credit score or source of income, Johnston City hard money lenders, who can be a private company or an individual, say yes to a loan after analyzing the property value, how easy it will be to market, its location, and the likelihood of recovering their money in case of foreclosure. Additional variables that impact an individual's eligibility for a hard money real estate loan can include the amount he is able to put towards a down payment, his past experience being a real estate investor, and price range of similar, just recently sold homes in the neighborhood.
Searching for a hard money lender in Johnston City to finance your fix and flip endeavor is not hard, as long as the opportunity that lies ahead of you is promising and has a strong potential for returns. Complete the form on this page or call us and let's talk about your property or properties.
A loan specialist will be in touch shortly