Hard Money Loans in Secaucus
A fabulous bargain on a fix and flip property in an excellent area of the city all of a sudden shows up — seems too good to be true. Many people know that knowledgeable professional flippers, like Tarek and Christina El Moussa from HGTV's reality flipping series, Fix or Flop, are able to earn an average profit margin of $40,000 to $50,000 on their flips. It goes without saying their past experiences rehabbing, understanding of hard money loans, familiarity with the housing market, and auction skills have played an important role in their success. That said, you have recently been brushing up your rehab and renovation knowledge, have a very good general contractor lined up and are certain that you can do a bang up job for this property.
But funding is usually a separate issue entirely. If you approach a customary lender, much like a bank for a mortgage loan, it can take a minimum of thirty to sixty days for your acceptance to come through and the funds to be dispersed. With the sellers looking for a fast closing, that does not appear to be a wise idea to you whatsoever.
On top of this, banks have already been tightening their lending criteria in recent times, making it difficult for people to obtain a typical loan if their credit situation is not flawless or he does not possess a consistent salaried profession. So will a shortage of financing prevent you from sticking with your dream? Never, because you can always use the Secaucus, New Jersey hard money loan approach to fund your home renovating project.
A hard money home loan in Secaucus provides you with what's probably most sought after by real estate investors — a fast closing time period of as little as 14 days. What's more, the LTV value can range up to 70% of the home's valuation, as evaluated by a certified appraiser. With the loan rates starting out near 10%, hard money real estate loans may seem, at first, to be more pricey as compared with traditional bank financing. But usually, the interest rate is not as pertinent for these loans, since they aren't long-term loans. When it comes to short-term loans of one or two years or less, you should consider them just like you would other expenses for your project. Once you have sold the property or home and have made a successful gain, you're able to recover this expense from the house — the same as recovering the cost of brand-new kitchen appliances that you've installed.
Aside from that, hard money mortgages are easy qualifying, even when you posses poor credit. Rather than focusing primarily on the person's credit score or income, Secaucus hard money lenders, who can be a private company or an individual, say yes to a loan after assessing the home value, its salability, its location, and the possibility of recuperating their capital in the event of foreclosure. The amount that an applicant can put down in advance towards the property or home, his past real estate experience, and selling price of equivalent properties in the same vicinity are additional factors that go into determining a person's eligibility for a hard money real estate loan.
So any time you come across a very good and lucrative investment opportunity, feel comfortable knowing you will have a hard money lender in Secaucus, willing to loan you the capital you need. Complete the contact form on this page or get in touch with us via phone to discuss your property or properties.
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