USING HARD MONEY LOANS TO FLIP YOUR HOUSE: 3CALoan
From last few years, flipping houses has become very popular. Books like Rich Dad, Poor Dad by Robert Kiyosaki and few TV shows like Flip this house can give you a big knowledge to Flip Your House Easily.
SO HOW DOES HOUSE FLIPPING WORK?
To easily flip your house you can buy a home for a cheaper price, fix up the things which need to fix in the home and then sell it for more price which you paid off early to buy that home. This is only possible if you have a start-up capital to purchase a home and you can only earn the profit by selling the home quickly. Generally, many people don’t have enough capital to purchase the home and neither bank approves the short-term loans. What will you do when you don’t get the loan from the bank? You can try Hard money loans.
HARD MONEY LOANS
Hard Money loan comes secured on the basis of a note and deed to trust for a real estate transaction. So by taking this loan, you can easily purchase a house to flip. As compare to banks these loans are much easier to obtain. Private money lenders fund hard money loans, which are short-term loans secured by real estate. They are usually a 12-month term loan, but they can extend from 2 to 5 years as well.
HARD MONEY LENDERS
Hard money lenders are a non-institutional individual or a company that gives a loan to borrowers. Private money lenders typically have some type of relationship with the borrower as opposed to hard money loans. Hard money lender can easily provide you access to money and you can use that money to flip houses.
WHY YOU CAN’T BORROW MONEY FROM A BANK?
You will find difficult to approve the short-term loan from the bank, but it is possible to obtain these types of loans. Banks make their money off of the interest rate that they charge you on the loan. Bank will generate greater money in long-term loans than in short-term loans, which is why they’re difficult to obtain.
BENEFITS OF USING A HARD MONEY LOAN
- Hard money loans are easier to be approved for than bank loans.
- Hard money loans are quicker to obtain than bank loans.
- You can pay off your loan and the interest payments quickly.
Final Thoughts
Hard Money Lenders will look at your pay stubs, your credit ratings and tax records. If everything checks out then they will request you to put money down. After all these steps you will be on your way to the flip your house easily. If you are interested in exploring the options of private hard money loans 3CALoan can help you find your answers fitting your personal and housing needs. We help our customers every step of the way. We prioritize informing and educating our clients about the home buying process. Our client’s happiness and confidence upon closing a deal reflect our excellent quality services. To find out more information about hard money loans and how we can help, contact us at (818) 322-5626 or (818) 3CA-Loan today! We will run you through the details of loans and hold your hand throughout the process.
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