Hard Money Loans in Kaufman
Suppose that you've come across this really great deal for a fix and flip property located in a terrific location, and you're either a seasoned real estate investor or a newbie who wants to try his hand at flipping. Many people know that capable professional flippers, like Tarek and Christina El Moussa from HGTV's reality flipping series, Fix or Flop, can readily turn a typical profit margin of forty to fifty thousand dollars on their home projects. And sure, they are aided in a major way due to their professional knowledge, auction skills and understanding of hard money loans. That said, you have also been developing your rehab and renovation skills, have a building contractor arranged and are certain that you're capable of doing a stellar job for this house.
But how can you obtain the needed financing for home flipping? When you apply for a traditional loan via a bank, you will wind up waiting around approximately 4-8 weeks up until the time the money is approved and the funds are ready to go. So if you're anticipating a fast closing, you must understand or know that this may cost you a couple weeks, making you miss out on the sale.
What's more, if you have a sub-optimal credit score or don't receive a consistent source of income, it is usually more difficult for you to qualify for a bank loan, with the stricter loan criteria banks have introduced lately. So does this mean you have no option, but to drop your aspiration of getting into rehabbing? Certainly not, considering that you can always go the Kaufman hard money loan route to finance your home flipping project.
If you should get a hard money home loan in Kaufman, you're going to get what is probably most essential to real estate negotiations throughout the country — a quick closing of about two weeks. Also, hard money lenders can do funding up to 70% LTV of the property or home's valuation, as assessed by a qualified third-party evaluator. Some people consider hard money real estate loans to be more expensive than ordinary loans, because the interest rates of such loans normally start at 10%. But once you understand these loans are not long-term mortgage loans, the rate can be misleading. Short-term loans of a couple months to a few years are best approached as cost of capital, very much like any other expense related to a project. Once you've sold the house and have made a positive gain, you'll be able to recoup this expense from the property — the same as recouping the money spent on the brand-new appliances for the kitchen that you've installed.
Furthermore, even individuals with bad credit will be able to be eligible for a hard money mortgage. Instead of focusing entirely on the borrower's credit score or net income, Kaufman hard money lenders, who may be a privately owned company or an individual person, say yes to a loan as a result of analyzing the home value, its salability, its location, and the possibility of recuperating their money in the event of foreclosure. How much of their own money an applicant can put down beforehand for the property or home, his past real estate experience, and price range of comparable homes in the same vicinity are additional details that go into establishing an individual's suitability for a hard money real estate loan.
So should you come across a very good and profitable flipping opportunity, rest assured you will have a hard money lender in Kaufman, ready to lend you the capital you need. Submit the form on this page or give us a call to talk about the property you have in mind.
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