Hard Money Loans in Killeen
Imagine you've run across this really great deal on a fix and flip property in an ideal location, and you are either a seasoned real estate investor or a first-timer who hopes to try his hand at flipping. Everybody knows that capable professional flippers, along the lines of Tarek and Christina El Moussa who star in HGTV's reality flipping show, Fix or Flop, can readily earn a typical profit of forty to fifty thousand dollars on their flips. No need to explain that their past experiences rehabbing, knowledge of hard money loans, familiarity with the market, and auction skills have played an important role in their results. Nonetheless, your rehab and renovation skills aren't bad either — besides, you've already located a suitable general contractor to tackle the project.
But capital can be a different question entirely. A typical lending institution, say for example a bank, takes at the very least 1 to 2 months to approve the mortgage and deliver the money. So if you're looking for a fast closing, you must recognize that this may set you back by a few weeks, causing you to miss out on the house.
With banks bringing in more challenging loan criteria in recent years, it is much harder for a self-employed individual to obtain a home loan, especially if his credit circumstances are not optimal. So will a lack of financing keep you from following your aspirations? Certainly not, on the grounds that you could always use the Killeen hard money loan approach to fund your flipping project.
A hard money home loan in Killeen provides you with what is probably most essential to real estate investors — a fast closing in as little as 2 weeks. Further, financing can be made up to 70% loan-to-value of the as-is property value, as deemed by a professional appraiser. With the interest rates starting at about 10%, hard money real estate loans may seem, at first glance, to be more expensive in comparison with traditional bank lending products. But once you appreciate that these are not long-term home loans, the rate may be misleading. As it pertains to short-term loans of 1 or 2 years or less, you should look at them the same as you would for any other expense for your project. Right after you remodel and resell the property, recouping this expense is the same as recuperating the cost of the stainless steel appliances you placed into the property.
Also, it isn't difficult to be eligible for a hard money mortgage, even when your credit situation is not that great. The applicant's credit score isn't the sole determining factor for Killeen hard money lenders — in addition, they analyze the property, its market value, where it is located, and its potential to bring back their investment if things do not work out as intended. Other factors that affect an individual's approval for a hard money real estate loan include how much he is able to put into a down payment, his previous experience being a real estate investor, and price of comparative, recently sold properties in the area.
Finding a hard money lender in Killeen to finance your renovation project is not very challenging, provided that the opportunity before you is promising and has a strong prospect for returns. Enter your info into the contact form on this page or give us a call and let's talk about your property.
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