Hard Money Loans in Chester

A fantastic deal on a fix and flip opportunity in an excellent subdivision all of a sudden shows up — sounds so good that it is difficult to believe. Professional property flippers, such as the young married couple on Flip or Flop, HGTV's reality flipping series, are capable of hauling in a profit of $40-$50k on most projects. It's fair to say their rehabbing experience, understanding of hard money loans, expertise in their market, and auction talents have had a big part in their results. Nevertheless, you are certain that your impressive rehab and remodeling skills will assist you to do a great job on the house — additionally, you have already lined up one of the most recommended contractors in town to take on this project.

But where can real estate investors obtain money? A standard lender, say for example a bank, takes at the very least 1 to 2 months to authorize the financing and provide the cash. Since most sellers would prefer a fast closing, it may be advisable to start searching for other funding options.

With banks introducing more challenging loan standards in recent years, it is now more challenging for a self-employed person to obtain a home loan, especially if his credit rating is not perfect. So do you have to stop trying and abandon your desire to venture into real estate? Certainly not, considering that you could always go the Chester hard money loan route to finance your home flipping project.

If you decide to opt for a hard money home loan in Chester, you're going to get what's probably most important to real estate transactions across the country — a fast closing of approximately fourteen days. What's more, the LTV value can go up to 70% of the property's valuation, as evaluated by a credentialed appraiser. Some individuals believe hard money real estate loans to be higher priced than standard financing, because the lending rates for such loans ordinarily start at 10%. But in reality, the interest rate isn't as useful a measure for these loans, because they will never be long-term financing. The price tag on such short-term loans ought to be viewed on par with every other financial outlay that you might encounter during the project. And as soon as you've finally turned the property, recouping this expense is identical to recovering the expense for the kitchen and bath improvements you performed.

Furthermore, even an individual with poor credit will be able to qualify for a hard money mortgage. As an alternative for focusing primarily on the applicant's credit score or wages, Chester hard money lenders, who can be a privately owned company or an individual, say yes to a loan as a result of examining the property value, how easy it will be to market, where it is located, and the probability of getting back their capital should they have to foreclose the loan. How much an individual can put down in advance for the house, how much experience he has in real estate investments, and selling price of equivalent homes in the neighborhood are additional factors that go into determining a person's qualification for a hard money real estate loan.

So in case you have stumbled on a really good fixer-upper with a significant chance of returns, you've also stumbled upon a hard money lender in Chester that's happy to provide funding for your flipping project. Complete the contact form on this page or get in touch with us via phone and let's discuss your project.

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Investment property loans only please, no primary residences at this time.