Hard Money Loans in New Orleans
A fantastic buy on a fix and flip opportunity located in a good neighborhood all of a sudden shows up — seems so good that it's difficult to believe. You've heard that veteran house flippers, such as the couple on HGTV's Flip or Flop, have a remarkable average return close to $40,000 – $50,000. And yes, they are aided in a major way by their professional knowledge, auction skills and familiarity with hard money loans. Still, your rehab and renovation knowledge isn't bad either — besides, you've already identified a good general contractor to tackle this job.
But where precisely do real estate investors get money? Should you opt for a traditional bank loan, you will need to wait around somewhere around 30-60 days until the mortgage is authorized and your money is readily available. Because most sellers prefer a fast closing, it may be best to start looking for some other funding options.
On top of this, banks have been tightening their lending standards in recent years, rendering it more challenging for a person to receive a regular home loan if their credit rating is not flawless or he does not possess a consistent salaried profession. So should you admit defeat and forego your desire to get into fix and flips? Never, on the grounds that you could always go the New Orleans hard money loan route to pay for your home flipping project.
If you put in an application for a hard money home loan in New Orleans, you'll get what is perhaps most vital to real estate purchases across the country — a quick closing of approximately two weeks. Plus, the LTV value can go up to 70% of the home value, as estimated by a certified appraiser. With the interest rates starting out around 10%, hard money real estate loans might appear, at first, to be more expensive when compared with conventional bank loans. But the lengths of these loans tend to be quite short, making the rate far less significant. When it comes to short-term loans of 1 or 2 years or even less, you should consider them identical to every other expense for your project. When you have turned the property and have made a successful gain, you're able to recover this expense from the house — very much like recouping the money spent on the brand-new appliances for the kitchen that you've put in.
Also, it's simple to be eligible for a a hard money mortgage, regardless if your credit score is not that impressive. The applicant's credit score isn't the sole determining factor for New Orleans hard money lenders — they also examine the home, its market valuation, where it is located, and its capacity to return their financial commitment if things should not go as planned. Adding to this, if the borrower have proven experience in equivalent real estate ventures, can put down cash for the down payment, and the value of comparable properties in the neighborhood works in his favor, he stands a very good chance of being eligible to get a hard money real estate loan.
So if you have stumbled on a really great fixer-upper with a huge prospect of returns, you have also found yourself a hard money lender in New Orleans who's willing to provide financing for your rehab project. Submit the form on this page or get in touch with us via phone and let's discuss your property or properties.
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