Hard Money Loans in Montezuma
A fantastic bargain on a fix and flip property located in a very good subdivision suddenly turns up — sounds too good to be true. Professional home flippers, much like the young married couple on Flip or Flop, HGTV's reality flipping program, are able to bring in a gain of $40-$50k on a regular basis. And sure, they are aided in a big way by their professional knowledge, auction abilities and knowledge of hard money loans. Still, your rehab and remodeling skills aren't bad either — in any case, you have already identified an ideal general contractor to tackle this job.
But capital is usually a different issue entirely. In the event you opt for an ordinary loan from the bank, you will wind up waiting around approximately 4-8 weeks before the mortgage is approved and the funds are ready to go. Since the majority of home owners would prefer a fast closing, it may be advisable to start seeking out additional funding alternatives.
With banks establishing harder loan requirements in the past several years, it has become more difficult for a self-employed person to get a mortgage loan, particularly if his credit rating is not perfect. So will a shortage of funding keep you from sticking to your aspirations? Never, because you can always go the Montezuma hard money loan route to finance your home flipping project.
A hard money home loan in Montezuma offers what's regarded as essential to many real estate deals — a quick closing of just a couple of weeks and more often than not even less. Besides that, hard money lenders can do lending up to 70% LTV of the home value, as assessed by a qualified third-party evaluation. A number of people regard hard money real estate loans to be more pricey than customary loans, since the lending rates of such loans commonly start out at 10%. But the time frames of these loans are relatively short, which makes the rate far less important. The price tag on such short-term loans should be considered on par with every other expense that you would encounter in the course of the project. Right after you rehab and resell the house, recovering this expense is the same as recovering the one for home appliances you put in the home.
What's more, it's simple to qualify for a hard money mortgage, regardless of whether your credit situation is not that extraordinary. Montezuma hard money lenders do not take on a loan strictly judging by the person's credit score — instead they will look at the home, where it is located and what it is worth, and the home's capacity to pay back the loan on its own. Other variables that have an impact on a person's approval for a hard money real estate loan include how much money he is able to put into a down payment, his prior experience as a real estate investor, and price range of comparable, fairly recently sold properties nearby.
So should you run into a really good and lucrative investment opportunity, rest assured you will have a hard money lender in Montezuma, ready to loan you the money you'll need. Enter your info into the contact form on this page or give us a call and let's discuss the project you have in mind.
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