Hard Money Loans in Beaver Falls
Suppose you've stumbled upon this truly good deal for a fix and flip property located in a terrific location, and you happen to be either an experienced real estate investor or a first-timer who hopes to try out flipping houses. Everybody knows that knowledgeable professional flippers, along the lines of Tarek and Christina El Moussa from HGTV's reality flipping series, Fix or Flop, are able to generate a typical profit of $40,000 to $50,000 when they flip properties. And sure, they are aided in a major way by their professional knowledge, auction expertise and knowledge of hard money loans. With that being said, you have also been developing your rehab and renovation knowledge, have a very good contractor lined up and are certain that you will be able to do a bang up job on this house.
But how can real estate investors get money? A conventional lender, like for example a bank, takes a minimum of 1 to 2 months to approve the mortgage and release the monies. Since the majority of home owners prefer a fast closing, it may be best to start searching for other financing options.
With banks bringing in harder loan criteria in the past several years, it's become more difficult for a self-employed individual to find a mortgage loan, particularly if his credit situation is not optimal. So must you admit defeat and forego your desire to embark into the real estate market? Never, considering that you can always go the Beaver Falls hard money loan route to fund your flipping project.
A hard money home loan in Beaver Falls boasts what's probably most sought after by real estate investors — a fast closing time of as little as 2 weeks. Besides that, hard money lenders can do lending up to 70% LTV of the property value, as calculated by a credentialed third-party evaluation. With interest rates starting off at about 10%, hard money real estate loans may look, at first glance, to be more expensive in comparison with conventional bank financing. But the lengths of these loans are rather short, which makes the rate far less important. Short-term loans of several months to a few years are best approached as cost of capital, the same as any other expense associated with a project. And when you have turned the property or home, recuperating this expense is identical to recouping the expense for all the bathroom or other updates you did.
Apart from this, hard money mortgages are not hard to qualify for, regardless if you posses a weak credit score. The borrower's credit score is not the lone deciding factor for Beaver Falls hard money lenders — in addition, they look at the property, its market valuation, where it is located, and its capacity to bring back their financial commitment if things do not go as planned. Additional variables that affect an individual's acceptance for a hard money real estate loan include how much money he is in a position to put into a down payment, his past experience as a real estate investor, and selling price of comparative, fairly recently sold properties in the neighborhood.
Locating a hard money lender in Beaver Falls to fund your real estate project is not difficult, provided that the opportunity before you is promising and boasts the right potential for returns. Complete the contact form or give us a call to discuss the property you have in mind.
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