Hard Money Loans in Asbury Park
There is this amazing possibility for rehabbing and flipping this wonderful outdated condo in a fantastic location and it seems like the deal you have been wanting for quite a while. Everyone knows that knowledgeable professional flippers, along the lines of Tarek and Christina El Moussa who do HGTV's reality flipping show, Fix or Flop, can readily earn an average profit margin of forty to fifty thousand dollars when they flip properties. And sure, they are helped in a big way due to their professional experience, auction abilities and familiarity with hard money loans. Still, your rehab and remodeling skills aren't bad either — besides, you have already identified the right licensed contractor to handle this home.
But how exactly can real estate investors find capital? Should you go after a conventional loan from the bank, you will wind up waiting around approximately 30-60 days until the money is approved and the funding is ready to go. Because most sellers favor a fast closing, you may have to start looking for other financing options.
With banks bringing in more challenging loan criteria in recent years, it's become more challenging for a self-employed individual to find a home loan, particularly if his credit score is not perfect. So does this mean you are without an option, but to abandon your aspiration of getting into flipping? Certainly not, given that you always have the Asbury Park, New Jersey hard money loan alternative.
A hard money home loan in Asbury Park gives you what's considered essential to most real estate sales — a quick closing of only a couple of weeks and sometimes even less. In addition, the LTV value can go up to 70% of the property's valuation, as determined by a certified appraiser. With rates starting out near 10%, hard money real estate loans may look, at first glance, to be higher priced compared to traditional bank lending products. But usually, the interest rate is not as useful a measure for these loans, because they will never be long-term financing. The price of such short-term loans ought to be evaluated much like any other cost that you might encounter in the course of the project. And once you've finally turned the property, recuperating this expense is the exact same as recovering the expense for all the bathroom upgrades you performed.
Besides, hard money mortgages are not difficult to qualify for, regardless if you posses below-average credit. The applicant's credit score will not be the exclusive determining factor for Asbury Park hard money lenders — they also look at the house, how much it is worth, its location, and its capacity to bring back their investment if things should not work out as intended. On top of that, if the person can demonstrate past experience in equivalent real estate endeavors, can put down cash for the down payment, and the cost of comparable properties in the neighborhood works to his benefit, he stands a very good shot of being eligible for a hard money real estate loan.
So any time you run into a very good and profitable flipping opportunity, rest assured you will have a hard money lender in Asbury Park, willing to lend you the capital you'll need. Enter your info into the contact form on this page or get in touch with us via phone to discuss your property.
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