Three Points Hard Money Lenders Fundamentals: ARV's, Interest Rates, Terms, Qualifications and More
Benefits of Hard Money Lending in Three Points
- Common Sense Underwriting
- Additional Borrowing Clout
- Customizable Loans
- No Limitations on the Number of Properties
What is Hard Money in Three Points Texas?
Hard money is a kind of mortgage loan that is an alternative when typical loans are not. Property investors throughout the Three Points TX area are researching to purchase, fix and flips and offer residential houses and commercial buildings for which they are always in a consistent search of financing alternatives where they could access the required amount quickly. Nonetheless, due to the rigid qualification requirements, poor credit history, reduced finance amount and inappropriate finance period, the typical modes of financing typically aren’t always readily available. This is where hard money help out and come to the assistance of investors.
Hard money loan providers not only offer investors the loan they need to get the an investment they desire purchase, they likewise offer guidance in selecting the correct home with potential for an excellent “fix and flip” deal, as well as getting the offer approved swiftly and efficiently. Below’s a check out the primary reasons that residence flippers in Three Points are turning to hard money loan providers over typical financing.
Hard Money Interest Rates and Terms in Three Points
There are many variables that influence the rates you can get with your hard money financing. These variable range from; credit scores, credit history, liquidity and real estate investing experience.
100 Percent Financing for Hard Money in Three Points
So is it really possible to get 100 percent financing on a hard money loan? The quick and simple answer is ABSOLUTELY, as long as you have a properly structured deal!
Now there are some some special provisions that make up a a properly structured deal.
- Not all hard money lenders offer this type of leverage
- Not all borrowers will qualify for this type of hard money loan
- Not all potential properties will fit the program
In order to accomplish a properly structured hard money loan deal, you need to understand how to leverage a hard money loan. Here are the variables you will need to dial in on upfront before you can consider this option and in this order.
- Comparables that you dialed into that gives you an accurate after-repaired-value (ARV)
- An accurate rehab budget
- As always, you will need to negotiate a low sales price
- Now if your negotiated low sales price and your rehab budget equal 70 percent (or less) of the after-repaired-value (ARV)
- The property should qualify for 100% hard money financing in Three Points because the best lenders will give you all of the 70% of the ARV which equal 100% financing! The purchase price and the rehab costs will be covered*
*There are a few variables that could prevent the property from qualifying
Hard Money Lenders in Three Points Fund These Property Types:
Commercial Hard Money Lender in Three Points
Types of commercial properties hard money loans finance:
- apartment complex loans
- mixed use loans
- industrial loans
- blanket mortgages loans
- raw land loans
- construction loans
- development project loans
Residential Hard Money Lender in Three Points
- fix and flip loans
- rehab and rent loans
- buy and hold loans