Hard Money Loans in Three Rivers
Suppose that you've run across this really great bargain for a fix and flip property in an ideal neighborhood, and you are either an experienced real estate investor or a newbie who hopes to try out flipping homes. Most folks know that knowledgeable professional flippers, such as Tarek and Christina El Moussa who do HGTV's reality flipping program, Fix or Flop, are able to generate a typical profit of forty to fifty thousand dollars when they flip properties. Without question, their past experiences rehabbing, understanding of hard money loans, expertise in their housing market, and auction talents have had an important role in their results. Nonetheless, your rehab and renovation skills aren't that bad either — in any case, you have already found an ideal building contractor to take on this project.
But where do you get the needed funding for flipping? A traditional lender, like for example a bank, takes a minimum of one to two months to consent to the loan and release the cash. So if you will be wishing for a fast closing, it's important to realize that this may set you back by a couple of weeks, causing you to lose out on the opportunity.
With banks adding tougher loan standards in the recent past, it's become more difficult for a self-employed individual to get a mortgage loan, particularly if his credit score is not flawless. So will a shortage of funds keep you from pursuing your dream? Certainly not, because you also have the Three Rivers hard money loan alternative.
A hard money home loan in Three Rivers provides you with what's possibly most crucial to real estate investors — a quick closing time of as few as a few weeks. Additionally, loans are made up to 70% loan-to-value of the "as is" value, as determined by a professional appraiser. On the surface, hard money real estate loans, with starting lending rates of 10%, seem to be more expensive than bank financing. But once you appreciate that these loans are not long-term loans, the rate of interest may be misleading. The price of such short-term loans ought to be looked at much like any other cost that you will encounter during the project. After you fix up and resell the property, recuperating this expense is no different than recovering the cost of the new kitchen appliances you installed in the home.
Additionally, it is simple to be eligible for a a hard money mortgage, even when your credit score is not that great. Instead of focusing strictly on the person's credit score or income, Three Rivers hard money lenders, who may be a private company or an individual, authorize a loan after examining the home value, its marketability, its location, and the probability of recuperating their money in case they have to foreclose the loan. On top of that, if the applicant can demonstrate past experience in equivalent real estate projects, can place down cash towards a down payment, and the cost of comparable homes in the area works to his benefit, he will have an excellent shot of being eligible for a hard money real estate loan.
So any time you run into an outstanding and profitable investment opportunity, rest assured you will have a hard money lender in Three Rivers, able to lend you the funds you'll need. Complete the form or get in touch with us via phone to discuss your project.
A loan specialist will be in touch shortly