Hard Money Loans in Alden
Imagine you've stumbled upon this excellent bargain for a fix and flip property you found in a terrific location, and you're either a seasoned real estate investor or a newbie who really wants to try out flipping homes. Expert property flippers, much like the young married couple on Flip or Flop, HGTV's reality flipping program, are capable of earning a profit of $40-$50k on most projects. It's fair to say their past experiences rehabbing, knowledge of hard money loans, expertise in their market, and auction talents have played a big part in their results. Nevertheless, you are convinced that your first class rehab and remodeling knowledge will enable you to do a superb job on this house — what's more, you've already lined up one of the best contractors in town to take care of the job.
But financing is usually a separate issue entirely. If you go after an ordinary loan via a bank, you will have to wait around somewhere around 1-2 months until the financing is authorized and the money is accessible. Since the majority of home owners favor a fast closing, you might need to begin looking for other financing alternatives.
With banks introducing more challenging loan standards in recent times, it is now harder for a self-employed person to find a home loan, especially when his credit rating is not flawless. So does this leave you with no option, but to give up your dream of venturing into flipping? By no means, considering that you can always go the Alden hard money loan route to fund your rehab project.
If you should obtain a hard money home loan in Alden, you will get what's perhaps most important to real estate offers throughout the country — a quick closing of roughly 2 weeks. What's more, the LTV value can reach up to 70% of the home value, as determined by a credentialed appraiser. On the surface, hard money real estate loans, with starting lending rates of 10%, could be seen as higher in price than bank loans. But in reality, the interest rate is not as useful a measure for these loans, because they will never be long-term financing. Short-term loans of several months to a handful of years are best approached in terms of cost of capital, very much like any other expenditure related to a project. And when you've sold the property or home, recouping this expense is comparable to recouping the expense for the kitchen and bath improvements you performed.
Besides, hard money mortgages are not difficult to qualify for, whether or not you posses a weak credit score. Alden hard money lenders do not authorize a loan exclusively according to the borrower's credit score — instead they additionally analyze the home, its location and value, and the property's capacity to pay back the financing without the help of the applicant. The total amount that an individual can put upfront towards the property, his real estate experience, and selling price of comparative homes in the neighborhood are various other details that go into ascertaining a person's suitability for a hard money real estate loan.
So if you have stumbled upon a wonderful real estate opportunity with a significant prospect of returns, you've also discovered a hard money lender in Alden that is willing to provide financing for your flipping ventures. Submit the form on this page or give us a call to discuss your project.
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