Hard Money Loans in Archbald
An outstanding buy on a fix and flip opportunity located in a good subdivision all of a sudden shows up — sounds so good that it is difficult to believe. You've heard that competent property flippers, much like the husband and wife on HGTV's Flip or Flop, enjoy an impressive average return of around $40,000 – $50,000. And without a doubt, they are helped in a big way via their professional knowledge, auction expertise and familiarity with hard money loans. However, you're convinced that your impressive rehab and remodeling abilities will enable you to do a quality job on the house — in addition, you've already lined up one of the most sought after general contractors in the area to take care of the project.
But funding is a separate problem altogether. Should you meet with a regular lending institution, much like a bank for funding, it's more than likely going to take a minimum of 4-8 weeks for your approval to be completed and your money to be given out. With all the home owners wanting a fast closing, that does not appear to be a good idea to you at all.
With banks adding tougher loan criteria in recent years, it has become tougher for a self-employed person to get a mortgage loan, particularly if his credit situation is not flawless. So must you give up and abandon your aspiration to get into fix and flips? Definitely not, because you also have the Archbald hard money loan option.
A hard money home loan in Archbald offers you what is deemed crucial to many real estate deals — a fast closing of only a 2-3 weeks and more often than not less. Further, financing is made up to 70% loan-to-value of the as-is valuation, as determined by a licensed appraiser. A number of people regard hard money real estate loans to be costlier than ordinary financing, since the interest rates for these loans commonly start off at 10%. But in reality, the lending rate is not as pertinent for these loans, simply because they will never be long-term financing. The cost of such short-term loans should be looked at much like any other expense that you would need to meet for the project. And when you've flipped the home, recouping this expense is comparable to recouping the expense for all the bathroom improvements you did.
What's more, it isn't difficult to obtain a hard money mortgage, even if your credit rating is not that extraordinary. The customer's credit score is not the sole deciding factor for Archbald hard money lenders — they also evaluate the property, its market value, where it is located, and its capacity to bring back their investment if everything does not work out as planned. On top of that, if the person have proven experience in equivalent real estate endeavors, can place down money for a down payment, and the cost of comparative properties in the vicinity works to his benefit, he will have a good chance of qualifying for a hard money real estate loan.
Locating a hard money lender in Archbald to cover expenses for your real estate project is not hard, as long as the opportunity that lies ahead of you is promising and boasts a strong potential for returns. Complete the contact form or call us to talk about the project you have in mind.
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