Hard Money Loans in Keller
Suppose you've stumbled upon this truly good deal on a fix and flip property you found in a great neighborhood, and you are either a seasoned real estate investor or a first-timer who really wants to try out flipping houses. You may have heard that veteran home flippers, such as the husband and wife on HGTV's Flip or Flop, enjoy a remarkable average return of around $40,000 – $50,000. And without a doubt, they are aided in a major way via their professional experience, auction abilities and familiarity with hard money loans. Nevertheless, you are convinced that your impressive rehab and remodeling abilities can help you do a quality job on the property — furthermore, you have already lined up one of the finest contractors in town to handle this job.
But how can real estate investors find financing? If you approach a regular lending institution, like a bank for financing, it is more than likely going to take, at a minimum, four to eight weeks for the approval to come through and the funds to be sent out. So if you're expecting a fast closing, you have to realize that this could set you back by a few weeks, causing you to lose out on the opportunity.
With banks establishing more challenging loan requirements in the past several years, it's become harder for a self-employed individual to find a home loan, especially when his credit circumstances are not perfect. So do you have to give up and abandon your aspiration to get into real estate? Under no circumstances, particularly when Keller hard money loans can help you realize great things in the real estate world.
A hard money home loan in Keller offers what's considered imperative to many real estate transactions — a very fast closing of just a 2-3 weeks and more often than not even less. Additionally, financing can be made up to 70% loan-to-value of the as-is property's valuation, as deemed by a qualified appraiser. With loan rates starting off near 10%, hard money real estate loans may look, at first, to be higher priced when compared with conventional bank financing. But the term lengths for these loans are rather short, which means the rate is less important. Short-term loans of a couple months to a few years are best approached as cost of capital, very much like all other costs involved with a project. Once you have sold the property and have made a good return, you're able to get back this expense from the property — similar to recuperating the money spent on the brand-new kitchen appliances that you have installed.
Furthermore, even individuals with poor credit can still be eligible for a hard money mortgage. As an alternative for focusing strictly on the person's credit score or source of income, Keller hard money lenders, who could be a privately owned company or an individual, approve a loan as a result of analyzing the property value, how easy it will be to market, its location, and the odds of getting back their money should they have to foreclose the loan. Other variables that affect a borrower's acceptance for a hard money real estate loan can include how much he can put towards a down payment, his prior experience as a real estate investor, and price range of comparable, recently sold homes in the neighborhood.
If you happen to have found a really great real estate opportunity with a huge prospect of returns, you've also discovered a hard money lender in Keller who's happy to provide funding for your rehab projects. Fill out the contact form or give us a call to talk about your property.
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