Hard Money Loans in Alburtis
An incredible buy on a fix and flip opportunity in a good subdivision all of a sudden shows up — sounds too good to be true. You've heard that veteran property flippers, much like the married couple on HGTV's Flip or Flop, turn a remarkable average return close to forty to fifty thousand dollars. Without question, their rehabbing experience, knowledge of hard money loans, expertise in their housing market, and auction talents have played a significant role in their success. On the other hand, you're assured that your superb rehab and remodeling knowledge will assist you to do a great job on this house — in addition, you already have lined up one of the finest building contractors in the business to take care of this job.
But funding is often a different issue entirely. Should you apply for an ordinary bank loan, you will end up waiting around roughly 1 to 2 months until eventually the financing is approved and the money is ready. With the sellers looking for a fast closing, that doesn't seem like a great idea to you in the slightest.
On top of this, banks have already been tightening up their lending requirements in recent times, which makes it difficult for someone to get a typical home loan if their credit situation is not perfect or he does not possess a regular salaried occupation. So will inadequate financing keep you from following your aspirations? Not at all, especially when Alburtis hard money loans enable you to accomplish great things in the real estate market.
A hard money home loan in Alburtis offers you what's deemed essential to most real estate sales — a very fast closing of only a couple of weeks and at many times even less. In addition, the LTV value can go up to 70% of the home value, as evaluated by a competent appraiser. With loan rates starting off near 10%, hard money real estate loans may appear, at first glance, to be higher in price in comparison with traditional bank loans. But once you appreciate that these are not long-term mortgage loans, the interest rate can be misleading. Short-term loans of a couple of months to a few years are best approached as cost of capital, the same as all other expenses associated with a project. After you renovate and sell off the property, recuperating this expense is just like recovering the money you spent for home appliances you put in the place.
Aside from that, hard money mortgages are not difficult to qualify for, even when you have below-average credit. The applicant's credit score is not the sole deciding factor for Alburtis hard money lenders — in addition, they analyze the home, what is it valued at, its location, and its ability to bring back their investment if everything does not work out as planned. Adding to this, if the borrower can demonstrate prior experience in similar real estate projects, can place down cash for the down payment, and the value of similar houses in the area works in his favor, he will have a good likelihood of qualifying for a hard money real estate loan.
So in case you have found a wonderful home to flip with a significant prospect of returns, you've also discovered a hard money lender in Alburtis that's ready to fund your rehab ventures. Complete the form on this page or give us a call and let's talk about the property or properties you have in mind.
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