Hard Money Loans in Katy
Suppose you've run into this excellent bargain for a fix and flip property in an ideal neighborhood, and you're either an experienced real estate investor or a first-timer who is looking to try out flipping houses. Most folks know that expert professional flippers, like Tarek and Christina El Moussa who star in HGTV's reality flipping program, Fix or Flop, can earn an average profit of $40,000 to $50,000 when they rehab properties. Of course, you also are aware that their successes can be credited to the fact that they are industry experts, are well versed in hard money loans, they know the market quite well and in addition, they know how to work a public auction for getting an appropriate price. Still, your rehab and renovation knowledge isn't bad either — aside from that, you've already found a good general contractor to take on this home.
But where do real estate investors get funding? A standard lending institution, like for example a bank, takes at least 1 to 2 months to approve the financing and hand over the funds. So if you will be hoping for a fast closing, you need to understand that this may cost you a couple weeks, causing you to miss out on the home.
On top of this, banks have been tightening up their lending standards as of late, rendering it more difficult for people to get a regular loan if their credit score is not perfect or he does not possess a regular salaried job. So should you stop trying and forego your dream to venture into fix and flips? Not at all, particularly while Katy hard money loans can help you realize many amazing things in the real estate market.
A hard money home loan in Katy gives you what is regarded as vital to most real estate transactions — a very fast closing of just a few weeks and sometimes even less. Furthermore, hard money lenders can approve loans up to 70% LTV of the property value, as established by a professional third-party evaluation. With the rates starting out near 10%, hard money real estate loans might appear, at first glance, to be higher priced compared to traditional bank financing. But in reality, the interest rate is not as pertinent for these loans, since they will never be long-term loans. When it comes to short-term loans of 1 or 2 years or even less, you should think of them just like you would other expenses for the project. Right after you renovate and sell the house, recovering this expense is no different than recovering the money you spent for new kitchen appliances you put in the property.
In addition, even someone with low credit will be able to qualify for a hard money mortgage. The customer's credit score isn't the lone deciding factor for Katy hard money lenders — in addition, they consider the home, what is it valued at, where it is located, and its ability to bring back their investment if things should not go as intended. On top of this, if the individual have proven experience in similar real estate endeavors, can place down cash for the down payment, and the price of comparable houses in the area works to his benefit, he will have a very good likelihood of being eligible to obtain a hard money real estate loan.
So any time you run into an outstanding and profitable flipping opportunity, relax knowing you will have a hard money lender in Katy, able to loan you the cash you need. Complete the form on this page or call us to talk about the property you have in mind.
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