Hard Money Loans in Newnan
Suppose you've run across this truly good deal on a fix and flip property in an ideal location, and you're either a seasoned real estate investor or a newbie who wants to try his hand at flipping. Professional residential home flippers, such as the young married couple on Flip or Flop, HGTV's reality flipping program, are capable of generating a gain of $40-$50k on average. Without question, their rehabbing experience, understanding of hard money loans, expertise in their housing market, and auction talents have been large factors to their results. Having said that, you have also been cultivating your rehab and renovation skills, have a building contractor lined up and are certain that you're capable of doing an impressive job for this home.
But where precisely can real estate investors obtain financing? Should you meet with a customary lending institution, much like a bank for a loan, it is very likely going to take, at a minimum, thirty to sixty days for your acceptance to come through and your money to be dispersed. So if you will be looking for a fast closing, you need to recognize that this could set you back by a few weeks, causing you to lose out on the home.
With banks adding tougher loan standards in the recent past, it is now much harder for a self-employed person to find a mortgage loan, especially when his credit score is not perfect. So do you have to admit defeat and abandon your dream to venture off into fix and flips? Not at all, particularly when Newnan hard money loans enable you to accomplish great things in real estate.
A hard money home loan in Newnan boasts what is probably most crucial to real estate investors — a fast closing in as little as 14 days. Further, loans can be done for up to 70% loan-to-value of the "as is" house value, as deemed by a licensed appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, appear to be higher in price than bank loans. But if you consider these loans are not long-term home loans, the rate can be misleading. As it pertains to short-term loans of a few years or even less, you should think of them identical to any sort of other expenditure for the project. And as soon as you have sold the home, recouping this expense is comparable to recovering the expense for the kitchen and bath updates you did.
Besides, hard money mortgages are not difficult to qualify for, regardless if you have a low credit score. Newnan hard money lenders don't approve a loan exclusively based on the borrower's credit score — rather they additionally analyze the property, its location and value, and the home's capability to pay back the financing without the assistance of the borrower. Additional criteria that affect a borrower's acceptance for a hard money real estate loan include how much he is able to put towards a down payment, his previous experience being a real estate investor, and selling price of comparative, recently sold properties nearby.
So any time you come across an outstanding and lucrative flipping opportunity, relax knowing you will have a hard money lender in Newnan, willing to loan you the cash you will need. Fill out the contact form or get in touch with us via phone and let's discuss your property or properties.
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