Hard Money Loans in Kingsland
Suppose that you've stumbled upon this really great bargain on a fix and flip property in an ideal location, and you are either a seasoned real estate investor or a newbie who wants to try out flipping houses. You've heard that competent house flippers, such as the couple on HGTV's Flip or Flop, have an impressive average profit close to $40,000 – $50,000. Naturally, you also are aware that their success are attributed to the simple fact that they're professionals, are proficient in hard money loans, they understand market trends really well and they also know how to work an auction for getting an appropriate price. That said, you've recently been developing your rehab and remodeling skills, have a very good contractor lined up and are positive that you will be able to do an impressive job for this home.
But money is a separate question entirely. For those who meet with a standard lender, much like a bank for a loan, it likely will take, at a minimum, thirty to sixty days for the acceptance to come through and the money to be distributed. Since the majority of home owners favor a fast closing, you may have to start seeking out other financing alternatives.
With banks adding harder loan criteria in the recent past, it is much harder for a self-employed individual to obtain a mortgage loan, particularly if his credit situation is not optimal. So must you stop trying and abandon your aspiration to venture off into real estate? By no means, considering that you could always go the Kingsland hard money loan route to pay for your rehab project.
If you decide to opt for a hard money home loan in Kingsland, you're going to get what's possibly most vital to real estate purchases across the country — a very fast closing of approximately fourteen days. Furthermore, hard money lenders can approve funding up to 70% LTV of the home value, as determined by a credentialed third-party evaluation. With the lending rates starting out around 10%, hard money real estate loans may look, at first glance, to be more costly compared to traditional bank lending products. But if you appreciate that these are not long-term mortgage loans, the interest rate can be misleading. The price of such short-term loans should be looked at on par with any other financial outlay that you would encounter in the course of the project. Once you've turned the property and have made a good profit, you'll be able to get back this expense from the property — very much like recovering the money necessary for the brand-new kitchen appliances that you installed.
What's more, it is easy to be eligible for a a hard money mortgage, regardless if your credit rating is not that extraordinary. Kingsland hard money lenders do not take on a loan strictly judging by the customer's credit score — instead they will evaluate the property, its value and location, and the property's capability to pay back the financing independent of the borrower. The total amount that an individual can put down in advance towards the property or home, how much practical experience he has in real estate investments, and price range of equivalent homes in the same area are additional details that go into establishing a borrower's qualification for a hard money real estate loan.
So if you have stumbled upon an excellent real estate opportunity with a high prospect of returns, you have also found yourself a hard money lender in Kingsland that's prepared to provide financing for your rehab venture. Enter your info into the contact form or give us a call and let's discuss your property.
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