Hard Money Loans in Blasdell
A fabulous bargain on a fix and flip property in a very good neighborhood suddenly shows up — seems so good that it is difficult to believe. Expert house flippers, like the young couple on Flip or Flop, HGTV's reality flipping show, are capable of earning a gain of forty to fifty grand on a consistent basis. Undoubtedly, you also understand that their successes can be credited to the fact that they're professionals, are knowledgeable in hard money loans, they know the market really well and in addition, they know how to work a public auction to purchase their houses at a good deal. However, you're certain that your superb rehab and renovation talents can help you do a great job for this house — in addition, you already have lined up one of the premier building contractors in the area to work on the job.
But funding is often a different question altogether. Should you opt for a traditional loan from the bank, you will have to wait somewhere around 4-8 weeks up until the time the financing is approved and the funds are ready to go. Considering that all the home owners are looking for a fast closing, that doesn't appear like a great idea to you whatsoever.
On top of this, banks have already been tightening their lending requirements in recent years, rendering it more hard for people to obtain a traditional loan if their credit rating is not perfect or he doesn't have a consistent salaried profession. So must you stop trying and abandon your desire to venture off into real estate? By no means, especially while Blasdell hard money loans enable you to realize many amazing things in the real estate world.
A hard money home loan in Blasdell provides you with what is perhaps most important to real estate investors — a quick closing time of as little as two weeks. Plus, the LTV value can go up to 70% of the home's valuation, as evaluated by a certified appraiser. On the surface, hard money real estate loans, with starting lending rates of 10%, seem to be more costly than bank financing. But once you appreciate that these are not long-term loans, the interest rate tends to be misleading. The price tag on such short-term loans ought to be viewed much like every other expense that you might encounter during the project. Once you have turned the house and have made a good return, you can recoup this expense from the property — just like recovering the cost of brand-new kitchen appliances that you have put in.
Additionally, it is easy to qualify for a hard money mortgage, even when your credit situation is not that great. Rather than focusing solely on the borrower's credit score or source of income, Blasdell hard money lenders, who may be a privately owned company or an individual person, say yes to a loan as a result of examining the home value, ease of marketability, its location, and the odds of getting back their capital in the event of foreclosure. Several other criteria that impact an individual's approval for a hard money real estate loan include how much he is able to put into a down payment, his former experience as a real estate investor, and selling price of comparative, recently sold properties in the area.
If you happen to have found an excellent fixer-upper with a huge potential for returns, you have also discovered a hard money lender in Blasdell that's prepared to provide funding for your rehab projects. Fill out the contact form on this page or give us a call to talk about your project.
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