Hard Money Loans in Justin
A fantastic deal on a fix and flip opportunity located in a very good neighborhood all of a sudden shows up — seems so good that it's difficult to believe. Professional home flippers, like the young couple on Flip or Flop, HGTV's reality flipping series, are able to generate a profit of $40-$50k on most projects. And yes, they are helped in a big way as a result of their professional know-how, auction expertise and understanding of hard money loans. Nonetheless, your rehab and renovation knowledge isn't that bad either — aside from that, you have already located a good general contractor to handle this project.
But how exactly do real estate investors find capital? When you meet with a common lending institution, much like a bank for a mortgage loan, it can take, at a minimum, 4-8 weeks for the approval to come through and the money to be given out. So if you're wishing for a fast closing, you must realize that this will cost you a couple weeks, making you miss out on the house.
Moreover, for those who have a sub-optimal credit situation or do not receive a routine income source, it usually is tougher to be eligible for a bank loan, considering the tougher loan criteria banks have issued lately. So does that mean you are without an option, but to give up your aspiration to venture into home flipping? Certainly not, due to the fact you can always use the Justin hard money loan approach to pay for your home flipping project.
If you should put in an application for a hard money home loan in Justin, you'll get what's probably most important to real estate purchases across the country — a very fast closing of approximately 14 days. Additionally, loan amounts are made up to 70% loan-to-value of the as-is valuation, as determined by a licensed appraiser. With rates starting around 10%, hard money real estate loans might appear, at first glance, to be more expensive in comparison with conventional bank financing. But in reality, the interest rate is not as useful a measure for these loans, given that they aren't long-term loans. The price tag on such short-term loans should be looked at much like any other expense that you might encounter during the project. Right after you rehab and sell the home, recuperating this expense is just like recouping the expense for new kitchen appliances you put in the place.
Apart from this, hard money mortgages are easy qualifying, whether or not you have poor credit. Instead of focusing exclusively on the borrower's credit score or source of income, Justin hard money lenders, who may be a privately owned company or an individual person, say yes to a loan as a result of examining the home value, how easy it will be to market, its location, and the possibility of recovering their capital in the event of foreclosure. On top of that, if the applicant can demonstrate prior experience in similar real estate ventures, can put down money for a down payment, and the value of equivalent properties in the area works to his benefit, he has got an excellent chance of qualifying for a hard money real estate loan.
If you happen to have stumbled upon a really good home to flip with a high prospect of returns, you have also found yourself a hard money lender in Justin who is willing to finance your flipping venture. Submit the form on this page or call us and let's discuss the property you have in mind.
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