Hard Money Loans in Ardsley
A fabulous buy on a fix and flip opportunity in a nice neighborhood all of a sudden shows up — sounds so good that it is hard to believe. Expert home flippers, like the young married couple on Flip or Flop, HGTV's reality flipping series, are able to haul in a profit of $40-$50k as an average on multiple occasions. And sure, they are aided in a major way due to their professional knowledge, auction skills and knowledge of hard money loans. On the other hand, you are certain that your first class rehab and renovation talents can help you do a great job for this property — in addition, you already have arranged to have one of the best general contractors in the business to take on the project.
But capital is often a separate issue entirely. A typical lender, for instance a bank, takes a minimum of 1 to 2 months to approve the loan and release the monies. Because most sellers give preference to a fast closing, it may be best to start seeking out other financing options.
As well as this, in case you have an unfavorable credit rating or do not receive a conventional income source, it is usually harder for you to be eligible for bank financing, with the stricter loan requirements banks have introduced in recent times. So do you have to give up and forego your dream to venture into fix and flips? Definitely not, because you also have the Ardsley hard money loan alternative.
A hard money home loan in Ardsley boasts what's probably most desired by real estate investors — a quick closing time period of as few as a few weeks. In addition, the LTV value can go up to 70% of the home's valuation, as evaluated by a credentialed appraiser. At first, hard money real estate loans, with starting interest rates of 10%, appear to be higher in price than bank loans. But in reality, the lending rate isn't as relevant for these loans, since they aren't long-term loans. Short-term loans of several months to a few years are best thought of in terms of cost of capital, similar to every other financial outlay involved with a project. When you have turned the house and have made a good gain, you're able to recoup this expense from the property or home — very much like recovering the money necessary for the brand-new home appliances that you have installed.
Aside from that, hard money mortgages are not difficult to qualify for, even if you have below-average credit. Ardsley hard money lenders don't approve a loan solely on the basis of the person's credit score — instead they will analyze the property or home, its valuation and location, and the property's capability to pay back the financing on its own. Adding to that, if the person can demonstrate prior experience in similar real estate projects, can place down cash for a down payment, and the value of equivalent properties in the vicinity works to his benefit, he has a good likelihood of being approved to obtain a hard money real estate loan.
Locating a hard money lender in Ardsley to help with expenses for your renovation project is not difficult, provided that the opportunity that lies ahead of you is promising and has a good prospect for returns. Submit the contact form or get in touch with us via phone and let's discuss your property.
A loan specialist will be in touch shortly