Hard Money Loans in Albion
A remarkable buy on a fix and flip property located in a nice neighborhood shows up out of the blue — sounds too good to be true. Expert property flippers, such as the young married couple on Flip or Flop, HGTV's reality flipping show, are capable of hauling in a profit of $40-$50k on most projects. Naturally, you also recognize that their results are due to the fact that they're professionals, are knowledgeable in hard money loans, they understand the market really well and in addition, they are good at working a public auction for getting a reasonable deal. Still, your rehab and renovation knowledge isn't that bad either — aside from that, you have already identified the right building contractor to tackle this project.
But capital can be a different question altogether. If you go after a regular loan from the bank, you will end up waiting roughly 4-8 weeks until the financing is authorized and your funds are ready. Thus if you are expecting a fast closing, you have to realize that this will set you back by a couple of weeks, causing you to lose out on the house.
Moreover, in case you have a sub-optimal credit rating or do not have a regular income source, it usually is harder to qualify for bank financing, seeing the stricter loan guidelines banks have issued recently. So will a shortage of funds keep you from pursuing your aspirations? Most certainly not, given that you also have the Albion, New York hard money loan option.
A hard money home loan in Albion offers you what's regarded as essential to many real estate transactions — a very fast closing of just a couple of weeks and at many times even less. Also, hard money lenders frequently agree to funding up to 70% LTV of the property or home's valuation, as determined by a certified third-party evaluator. A number of people regard hard money real estate loans to be more costly than standard financing, considering interest rates of such loans typically start at 10%. But if you appreciate that these are not long-term home loans, the rate of interest can be misleading. The price tag on such short-term loans ought to be looked at much like every other cost that you might encounter during the project. Once you have sold the home and have made a good return, you're able to reclaim this expense from the property or home — very much like recuperating the cost of brand-new kitchen appliances that you have installed.
In addition, even someone with low credit can still be eligible for a hard money mortgage. The customer's credit score is not the lone deciding factor for Albion hard money lenders — they also look at the home, its market valuation, its location, and its ability to earn back their investment if everything does not go as planned. The amount that a borrower can put down in advance towards the property or home, his past real estate experience, and selling price of comparative properties in the same area are various other factors that go into determining an applicant's suitability for a hard money real estate loan.
Locating a hard money lender in Albion to help with expenses for your fix and flip endeavor is not very hard, provided that the opportunity that lies before you is promising and has the right prospect for returns. Fill out the form or give us a call and let's discuss your project.
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