Hard Money Loans in LaFayette

A fantastic deal on a fix and flip opportunity located in an excellent area of the city all of a sudden shows up — sounds too good to be true. Many people know that expert professional flippers, such as Tarek and Christina El Moussa from HGTV's reality flipping program, Fix or Flop, are able to turn a typical profit of $40,000 to $50,000 on their home projects. And sure, they are helped in a big way as a result of their professional know-how, auction skills and understanding of hard money loans. That said, you have also been brushing up your rehab and renovation skills, have got a general contractor arranged and are positive that you're capable of doing a stellar job for this property.

But funding can be a different problem entirely. Should you opt for a normal loan via a bank, you will need to wait around roughly 1-2 months until eventually the mortgage is authorized and the funding is readily available. With the sellers seeking a fast closing, that doesn't appear like a great idea to you in the slightest.

Furthermore, in case you have a less-than-perfect credit situation or do not have a consistent income, it usually is tougher for you to obtain bank financing, seeing the more stringent loan criteria banks have issued as of late. So does this leave you with no other option, but to abandon your aspiration to venture into flipping? Never, because you can always go the LaFayette hard money loan route to finance your rehab project.

A hard money home loan in LaFayette offers what's deemed essential to many real estate deals — a fast closing of just a few weeks and oftentimes less. Furthermore, hard money lenders are capable of doing lending up to 70% LTV of the property's valuation, as assessed by a qualified third-party appraiser. With rates starting around 10%, hard money real estate loans may look, at first, to be more costly when compared with traditional bank loans. But the term lengths for these loans tend to be relatively short, making the rate less significant. Short-term loans of several months to a few years are best thought of in terms of cost of capital, similar to all other expenditures related to a project. After you remodel and sell the property, recovering this expense is no different than recouping the money you spent for home appliances you placed into the house.

Additionally, it is simple to be eligible for a hard money mortgage, regardless of whether your credit situation is not that extraordinary. Rather than focusing solely on the borrower's credit score or wages, LaFayette hard money lenders, who can be a private company or an individual, say yes to a loan after examining the property value, ease of marketability, where it is located, and the likelihood of recuperating their capital if they have to foreclose the loan. On top of this, if the borrower can demonstrate prior experience in similar real estate ventures, can place down cash for a down payment, and the value of comparative properties in the neighborhood works to his benefit, he stands a very good chance of being approved to obtain a hard money real estate loan.

Finding a hard money lender in LaFayette to finance your flipping business is not very challenging, provided that the opportunity that lies ahead of you is promising and boasts a good potential for returns. Submit the contact form or give us a call and let's discuss your property.

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Investment property loans only please, no primary residences at this time.