An outstanding buy on a fix and flip property located in a nice area of the city all of a sudden shows up — seems too good to be true. Professional home flippers, similar to the young married couple on Flip or Flop, HGTV's reality flipping program, are capable of hauling in a gain of forty to fifty grand for most homes. And yes, they are helped in a major way by their professional knowledge, auction skills and familiarity with hard money loans. Nevertheless, you're certain that your first class rehab and renovation knowledge will enable you to do a superb job on the project — furthermore, you already have arranged to have one of the most sought after contractors in the area to take on this job.

But financing is usually a different problem entirely. If you opt for a regular loan via a bank, you will need to wait somewhere around 1 to 2 months before the money is authorized and your money is available. So if you're looking for a fast closing, you need to be aware that this will cost you weeks, causing you to miss out on the sale.

With banks introducing tougher loan criteria in the past several years, it's become harder for a self-employed individual to obtain a mortgage loan, particularly if his credit situation is not optimal. So will a lack of funding prevent you from following your aspirations? By no means, considering that you could always use the Sleepy Hollow, New York hard money loan approach to fund your home renovating project.

A hard money home loan in Sleepy Hollow provides what's considered crucial to most real estate deals — a quick closing of just a 2-3 weeks and at times less. Aside from that, loans can be done for up to 70% loan-to-value of the as-is property value, as established by a licensed appraiser. With lending rates starting off around 10%, hard money real estate loans may look, at first, to be higher in price compared to conventional bank loans. But in reality, the lending rate isn't as pertinent for these loans, given that they will never be long-term financing. As it pertains to short-term loans of several years or less, you should look at them just like you would other expenses for your project. Once you have resold the property and have made a good return, you're able to get back this expense from the house — very much like recouping the cost of brand-new kitchen appliances that you have installed.

Besides, hard money mortgages are not difficult to qualify for, whether or not you have less-than-perfect credit. The customer's credit score is not the single deciding factor for Sleepy Hollow hard money lenders — they also evaluate the home, its market valuation, where it is located, and its capacity to bring back their financial commitment if things do not work out as intended. Several other variables that impact a person's acceptance for a hard money real estate loan include how much money he can put into a down payment, his former experience as a real estate investor, and price range of comparative, recently sold homes in the vicinity.

So in the event you come across a really good and worthwhile flipping opportunity, relax knowing you'll have a hard money lender in Sleepy Hollow, willing to lend you the capital you may need. Submit the contact form on this page or get in touch with us via phone to talk about your property.