Hard Money Loans in Nicholls
There's this phenomenal opportunity to fix and flip this wonderful out of date condo in a good area and it seems like the one you have been eagerly waiting on for quite a while. Everyone knows that knowledgeable professional flippers, along the lines of Tarek and Christina El Moussa who do HGTV's reality home flipping show, Fix or Flop, are able to earn a typical profit margin of $40,000 to $50,000 on their home projects. Of course, you also are aware that their successes can be credited to the fact that they're experts, are proficient in hard money loans, they know the marketplace quite well and furthermore, they know how to work a public auction for getting a good deal. Nonetheless, your rehab and renovation knowledge isn't bad either — in any case, you've already found a good general contractor to handle the project.
But capital can be a different issue entirely. Should you get in touch with a standard lender, such as a bank for funding, it is more than likely going to take a minimum of four to eight weeks for the approval to be completed and your money to be given out. Due to the fact all the home owners are looking for a fast closing, that does not appear like a good idea to you at all.
With banks introducing tougher loan criteria in recent times, it is more challenging for a self-employed person to obtain a mortgage loan, particularly if his credit score is not perfect. So should you admit defeat and abandon your dream to get into the real estate market? Certainly not, because you can always use the Nicholls hard money loan approach to pay for your rehab project.
A hard money home loan in Nicholls provides you with what is possibly most desired by real estate investors — a quick closing in as few as 14 days. Also, hard money lenders frequently agree to loans up to 70% LTV of the home's valuation, as determined by a qualified third-party evaluator. At first, hard money real estate loans, with starting interest rates of 10%, seem to be more pricey than bank lending options. But in reality, the interest rate is not as relevant for these loans, simply because they aren't long-term financing. As it pertains to short-term loans of a few years or less, you should look at them identical to any other expense for your project. Once you've sold the house and have made a positive gain, you'll be able to reclaim this expense from the house — the same as recuperating the cost of brand-new kitchen appliances that you've installed.
Aside from that, hard money mortgages are not difficult to qualify for, even when you have got below-average credit. Rather than focusing solely on the applicant's credit score or source of income, Nicholls hard money lenders, who can be a private company or an individual, say yes to a loan after evaluating the home value, ease of marketability, its location, and the probability of recovering their capital if they have to foreclose the loan. On top of this, if the borrower can demonstrate prior experience in equivalent real estate endeavors, can place down money for a down payment, and the price of comparative properties in the vicinity works to his benefit, he will have a good likelihood of qualifying for a hard money real estate loan.
So if you have found an excellent fixer-upper with a huge probability of returns, you have also stumbled upon a hard money lender in Nicholls that's willing to provide financing for your fix and flip project. Submit the form or call us and let's discuss the property or properties you have in mind.
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