Hard Money Loans in Boyertown
A remarkable buy on a fix and flip property in a very good subdivision all of a sudden shows up — sounds too good to be true. Expert property flippers, such as the young couple on Flip or Flop, HGTV's reality flipping program, are able to earn a gain of forty to fifty grand for most homes. No need to explain that their rehabbing experience, understanding of hard money loans, familiarity with the housing market, and auction skills have played a big part in their success. Still, your rehab and renovation skills aren't that bad either — besides, you've already found a suitable licensed contractor to handle this project.
But where can real estate investors get financing? When you apply for an ordinary bank loan, you will have to wait around somewhere around 1 to 2 months until the mortgage loan is approved and your money is readily available. Since the majority of home owners would rather have a fast closing, it may be advisable to begin searching for additional funding alternatives.
With banks introducing harder loan standards in the past several years, it is tougher for a self-employed person to obtain a home loan, particularly if his credit score is not optimal. So must you admit defeat and forego your dream to embark into fix and flips? Not at all, especially while Boyertown hard money loans can help you accomplish many amazing things in the real estate market.
If you put in an application for a hard money home loan in Boyertown, you have access to what is probably most vital to real estate purchases throughout the country — a very fast closing of about 2 weeks. What's more, the LTV value can range up to 70% of the home's valuation, as evaluated by a competent appraiser. With lending rates starting off near 10%, hard money real estate loans may appear, at first glance, to be higher priced as compared with conventional bank loans. But the term lengths for these loans tend to be quite short, making the rate less significant. When it comes to short-term loans of several years or less, you should think about them similar to every other expenditure for your project. After you renovate and sell off the property, recuperating this expense is just like recouping the one for home appliances you placed into the place.
Moreover, even an individual with bad credit can easily be eligible for a hard money mortgage. The applicant's credit score will not be the single determining factor for Boyertown hard money lenders — they also consider the property, its market value, where it is located, and its potential to bring back their financial commitment if everything does not go as planned. On top of that, if the applicant have proven experience in similar real estate ventures, can place down money towards a down payment, and the cost of equivalent homes in the neighborhood works in his favor, he will have a really good shot of being approved to get a hard money real estate loan.
Finding a hard money lender in Boyertown to help with expenses for your renovation project is not hard, provided that the opportunity that lies ahead of you is promising and possesses the right potential for returns. Submit the contact form or call us to talk about the property you have in mind.
A loan specialist will be in touch shortly