Hard Money Loans in Kenner
A fantastic deal on a fix and flip opportunity in a good neighborhood suddenly turns up — sounds too good to be true. Expert home flippers, such as the young married couple on Flip or Flop, HGTV's reality flipping show, are able to haul in a profit of $40-$50k as an average on multiple occassions. Of course, you also recognize that their great results are credited to the fact that they're industry experts, are proficient in hard money loans, they understand market trends really well and additionally, they know how to work an auction to purchase their homes at a good price. However, you are convinced that your superb rehab and renovation skills can help you do an outstanding job on the home — additionally, you have already lined up one of the finest general contractors in town to take care of this job.
But how do you obtain the necessary funding for home flipping? For those who apply for a regular loan via a bank, you will need to wait around approximately 4-8 weeks up until the time the financing is approved and your funds are ready to go. Since most home owners give preference to a fast closing, you might want to start seeking out some other financing alternatives.
What's more, if you have a sub-optimal credit rating or do not have a consistent income source, it may be harder for you to obtain a bank loan, considering the stricter loan criteria banks have introduced lately. So does that mean you have no option, but to abandon your aspiration of getting into home renovating? By no means, on the grounds that you can always go the Kenner hard money loan route to fund your rehab project.
A hard money home loan in Kenner provides you with what's probably most crucial to real estate investors — a fast closing time of as few as two weeks. And additionally, financing can be done for up to 70% loan-to-value of the as-is home's valuation, as deemed by a professional appraiser. A number of people regard hard money real estate loans to be higher priced than standard loans, since the interest rates for such loans typically start at 10%. But the time frames of these loans tend to be much shorter, making the interest rate much less important. The price tag on such short-term loans ought to be viewed on par with every other cost that you would have to meet for the project. When you have turned the property and have made a good return, you can get back this expense from the house — just like recovering the cost of brand-new home appliances that you have installed.
Also, it's easy to be eligible for a hard money mortgage, regardless if your credit score is not that extraordinary. As an alternative for focusing strictly on the person's credit score or source of income, Kenner hard money lenders, who could be a private company or an individual person, approve a loan after analyzing the home value, its marketability, its location, and the odds of getting back their money in case they have to foreclose the loan. How much an individual can put down beforehand towards the property or home, how much practical experience he has in real estate investing, and selling price of comparative homes in the same area are other factors that go into ascertaining an applicant's qualification for a hard money real estate loan.
So in case you have stumbled on a really good fixer-upper with a huge prospect of returns, you've also found yourself a hard money lender in Kenner who is ready to provide financing for your fix and flip projects. Complete the form on this page or give us a call to talk about your property or properties.
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