Hard Money Loans in Catskill
There's this outstanding opportunity to fix and flip this wonderful outdated condo in a good location and it seems like the one you've been eagerly waiting on for a long time. You've probably heard that competent house flippers, much like the married couple on HGTV's Flip or Flop, turn an impressive average return close to forty to fifty thousand dollars. And indeed, they are helped in a big way due to their professional experience, auction expertise and familiarity with hard money loans. Still, your rehab and renovation skills aren't bad either — besides, you have already identified an ideal general contractor to handle this job.
But where do real estate investors get money? When you go after a regular loan via a bank, you will have to wait around somewhere around 1 to 2 months until eventually the mortgage loan is approved and your funding is ready to go. Due to the fact the home owners want a fast closing, that doesn't appear like a wise idea to you at all.
Furthermore, should you have a sub-optimal credit situation or don't receive a consistent income, it usually is more challenging to obtain bank financing, seeing the stricter loan criteria banks have put in place recently. So must you stop trying and abandon your dream to venture off into real estate? Never, considering that you could always use the Catskill hard money loan approach to fund your home renovating project.
A hard money home loan in Catskill boasts what is possibly most essential to real estate investors — a fast closing time of as little as 14 days. And additionally, financing can be done for up to 70% loan-to-value of the as-is property value, as determined by a professional appraiser. Some individuals believe hard money real estate loans to be higher priced than regular loans, because the interest rates of such loans generally start at 10%. But if you understand these are not long-term loans, the rate of interest tends to be misleading. Short-term loans of a couple of months to a handful of years are best looked at in terms of cost of capital, much like all other expenditures involved with a project. And once you've finally flipped the home, recovering this expense is the exact same as recouping the expense for the bathroom or other upgrades you did.
Aside from that, hard money mortgages are not hard to qualify for, even in the event you have bad credit. As an alternative for focusing exclusively on the borrower's credit score or income, Catskill hard money lenders, who can be a privately owned company or an individual, authorize a loan after evaluating the property value, ease of marketability, its location, and the odds of recovering their capital in case of foreclosure. Other variables that influence an applicant'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 prior experience being a real estate investor, and price range of similar, fairly recently sold homes nearby.
So any time you run into an outstanding and lucrative investment opportunity, rest assured you'll have a hard money lender in Catskill, prepared to loan you the cash you'll need. Complete the contact form or give us a call to talk about your property.
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