Hard Money Loans in Jonesboro

Suppose that you've run into this excellent bargain on a fix and flip property in a great location, and you're either a seasoned real estate investor or a newbie who is looking to try out flipping homes. Everyone knows that expert professional flippers, along the lines of Tarek and Christina El Moussa who do HGTV's reality flipping series, Fix or Flop, can generate a typical profit margin of forty to fifty thousand dollars in their rehab business. Undoubtedly, you also realize that their great results are credited to the fact that they are experts, are knowledgeable in hard money loans, they understand the market quite well and furthermore, they are good at working a public auction to buy their houses at an appropriate price. On the other hand, you're assured that your superb rehab and remodeling abilities will assist you to do a superb job on this property — what's more, you have already lined up one of the most suggested general contractors in town to handle the project.

But where do real estate investors obtain money? A traditional lender, say for example a bank, takes at the very least one to two months to authorize the loan and provide the money. With the home owners looking for a fast closing, that does not appear like a good option to you at all.

Furthermore, in case you have an unfavorable credit situation or do not have a conventional source of income, it is usually more difficult for you to be eligible for bank financing, with the tougher loan criteria banks have put in place lately. So does this mean you are without an option, but to drop your dream of getting into flipping? Certainly not, given that you also have the Jonesboro hard money loan alternative.

If you apply for a hard money home loan in Jonesboro, you have access to what is probably most vital to real estate purchases across the country — a very fast closing of roughly two weeks. Besides that, hard money lenders can approve loans up to 70% LTV of the property's valuation, as assessed by a professional third-party evaluation. Some individuals believe hard money real estate loans to be costlier than ordinary loans, considering lending rates for such loans ordinarily start out at 10%. But when you appreciate that these are not long-term mortgage loans, the rate of interest can be misleading. The cost of such short-term loans ought to be considered on par with any other expense that you will encounter during the project. Once you've turned the property and have made a positive financial gain, you'll be able to recoup this expense from the home — similar to recuperating the cost of brand-new appliances for the kitchen that you've installed.

Moreover, even an individual with bad credit will be able to qualify for a hard money mortgage. Jonesboro hard money lenders do not take on a loan strictly according to the applicant's credit score — instead they additionally assess the property, its location and value, and the property's capability to pay back the loan independent of the person. How much money a borrower can put upfront for the property or home, his real estate experience, and price range of equivalent properties in the neighborhood are various other factors that go into establishing a person's eligibility for a hard money real estate loan.

So in the event you run into a really good and lucrative flipping opportunity, feel comfortable knowing you will have a hard money lender in Jonesboro, equipped to lend you the funds you will need. Fill out the form on this page or give us a call and let's talk about your property.

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Investment property loans only please, no primary residences at this time.