Hard Money Loans in Albany
Suppose that you've stumbled upon this truly good deal for a fix and flip property you found in an ideal location, and you are either an experienced real estate investor or a first-timer who hopes to try out flipping homes. You may have heard that competent property flippers, such as the husband and wife on HGTV's Flip or Flop, enjoy a remarkable average return close to forty to fifty thousand dollars. It's fair to say their past experiences rehabbing, understanding of hard money loans, expertise in their market, and auction talents have had a significant role in their successes. That said, you have also been brushing up your rehab and renovation skills, have a very good contractor lined up and are positive that you're capable of doing an impressive job for this house.
But where precisely do real estate investors find funding? If you go after a traditional bank loan, you will need to wait approximately one to two months until eventually the loan is approved and your money is readily available. Because most home owners give preference to a fast closing, you might want to begin searching for additional financing options.
Moreover, for those who have an unfavorable credit score or do not have a consistent income, it is usually more difficult to be eligible for a bank loan, seeing the stricter loan criteria banks have issued as of late. So does this mean you have no option, but to abandon your dream of venturing into the fix and flip business? By no means, due to the fact you could always use the Albany hard money loan approach to fund your rehab project.
A hard money home loan in Albany offers what is considered vital to most real estate deals — a quick closing of only a 2-3 weeks and oftentimes less. Additionally, financing is made up to 70% loan-to-value of the "as is" house value, as established by a professional appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, appear to be costlier than bank lending products. But the term lengths for these loans tend to be fairly short, which means the interest rate is less important. Short-term loans of several months to a few years are best looked at as cost of capital, similar to every other expenditure involved with a project. Right after you rehab and unload the property, recouping this expense is just like recovering the cost of the home appliances you put in the property.
Apart from this, hard money mortgages are not difficult to qualify for, whether or not you have less-than-perfect credit. Albany hard money lenders do not authorize a loan exclusively according to the applicant's credit score — instead they also look at the property or home, its valuation and location, and the property's capability to pay back the financing by itself. Other factors that impact an individual's eligibility for a hard money real estate loan can include how much he is in a position to put towards a down payment, his previous experience as a real estate investor, and price of comparable, recently sold homes in the area.
So if you have stumbled upon a really good home to flip with a high probability of returns, you've also stumbled upon a hard money lender in Albany who is happy to finance your rehab venture. Enter your info into the contact form on this page or get in touch with us via phone and let's talk about your property or properties.
A loan specialist will be in touch shortly