Hard Money Loans in Baldwinsville
Suppose that you've run into this excellent bargain on a fix and flip property you found in an ideal neighborhood, and you're either a seasoned real estate investor or a newbie who really wants to try out flipping homes. Everyone knows that knowledgeable professional flippers, along the lines of Tarek and Christina El Moussa from HGTV's reality home flipping show, Fix or Flop, are able to earn a typical profit of forty to fifty thousand dollars on their home projects. Undoubtedly, you also understand that their great results are credited to the simple fact that they are professionals, are proficient in hard money loans, they know the market quite well and they also are good at working an auction for getting an appropriate deal. Having said that, you have likewise been developing your rehab and remodeling knowledge, have a very good general contractor ready to go and are certain that you can do a bang up job for this property.
But where can you find the necessary financing for flipping? A conventional lender, for instance a bank, takes no less than one to two months to authorize the loan and deliver the cash. With the home owners seeking a fast closing, that does not appear to be a good idea to you at all.
With banks adding tougher loan standards in the last few years, it has become much harder for a self-employed individual to get a home loan, especially when his credit score is not optimal. So does this leave you with no other option, but to give up your ambition to venture into rehabbing? Never, because you could always go the Baldwinsville, New York hard money loan route to pay for your home flipping project.
A hard money home loan in Baldwinsville offers what is viewed as essential to many real estate deals — a very fast closing of just a 2-3 weeks and oftentimes less. Besides that, hard money lenders are able to do lending up to 70% LTV of the property or home's valuation, as estimated by a professional third-party evaluator. A number of people regard hard money real estate loans to be more expensive than customary loans, because the interest rates for these loans often start out at 10%. But usually, the lending rate is not as useful a measure for these loans, because they aren't long-term loans. The cost of such short-term loans should be evaluated much like every other cost that you would have to meet for the project. And once you have finally turned the property, recuperating this expense is identical to recuperating the expense for all the kitchen and bath updates you did.
In addition, even a person with low credit can easily qualify for a hard money mortgage. Instead of focusing exclusively on the person's credit score or source of income, Baldwinsville hard money lenders, who can be a privately owned company or an individual, approve a loan after assessing the property value, ease of marketability, its location, and the probability of recovering their money in case of foreclosure. On top of that, if the applicant can demonstrate prior experience in equivalent real estate ventures, can place down money towards the down payment, and the cost of similar houses in the neighborhood works in his favor, he will have an excellent chance of being eligible to get a hard money real estate loan.
So in case you have stumbled upon a really good real estate opportunity with a significant potential for returns, you have also stumbled upon a hard money lender in Baldwinsville who's happy to provide financing for your fix and flip project. Enter your info into the form or get in touch with us via phone to discuss the project you have in mind.
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