Hard Money Loans in Longview
There is this amazing possibility for renovating and flipping this nice out of date property in a good area and it seems like the deal you've been anticipating for quite a while. Professional home flippers, much like the young married couple on Flip or Flop, HGTV's reality flipping series, are able to haul in a profit of $40-$50k for most homes. Naturally, you also recognize that their great results can be attributed to the fact that they are experts, are well versed in hard money loans, they understand the market quite well and furthermore, they are good at working a public auction for getting a good deal. However, you're assured that your superb rehab and remodeling skills will enable you to do a superb job on the project — furthermore, you already have arranged to have one of the best contractors in the area to handle this project.
But money can be a separate problem entirely. Should you go after a conventional loan from the bank, you will need to wait somewhere around one to two months up until the money is authorized and your funding is ready to go. So if you're looking for a fast closing, it's important to realize that this may cost you a couple of weeks, making you miss out on the sale.
Furthermore, in case you have a sub-optimal credit rating or don't receive a conventional income, it may be more difficult for you to qualify for a bank loan, with the tougher loan requirements banks have put in place as of late. So will a lack of financing stop you from pursuing your ambitions? Most certainly not, seeing as you always have the Longview hard money loan alternative.
A hard money home loan in Longview boasts what's probably most essential to real estate investors — a very fast closing in as little as a few weeks. Also, hard money lenders will often consent to loans up to 70% LTV of the property or home value, as calculated by a credentialed third-party evaluator. At first glance, hard money real estate loans, with starting lending rates of 10%, seem to be costlier than bank lending products. But the time frames of these loans tend to be rather short, which makes the interest rate far less important. Short-term loans of a couple of months to a few years are best looked at as cost of capital, similar to any other financial outlay related to a project. Right after you rehab and resell the house, recuperating this expense is just like recuperating the money you spent for new kitchen appliances you put in the property.
In addition, even an individual with poor credit can still qualify for a hard money mortgage. As an alternative for focusing solely on the applicant's credit score or net income, Longview hard money lenders, who could be a privately owned company or an individual, approve a loan as a result of examining the home value, its salability, its location, and the possibility of getting back their capital in case of foreclosure. Adding to this, if the individual have proven experience in similar real estate ventures, can place down cash towards the down payment, and the value of comparable properties in the vicinity works to his benefit, he has a really good shot of being eligible to get a hard money real estate loan.
So if you have stumbled on an excellent home to flip with a high prospect of returns, you have also found yourself a hard money lender in Longview who is ready to provide financing for your fix and flip ventures. Enter your info into the contact form on this page or call us to discuss the project you have in mind.