Hard Money Loans in Chestnut Ridge
There's this phenomenal possibility for fixing and flipping this nice out of date property in a good area and it looks a lot like the one you've been looking forward to for a long time. Many people know that expert professional flippers, such as Tarek and Christina El Moussa from HGTV's reality flipping series, Fix or Flop, are able to earn an average profit margin of $40,000 to $50,000 in their rehab business. And yes, they are helped in a big way due to their professional experience, auction skills and understanding of hard money loans. Still, your rehab and renovation knowledge isn't bad either — in any case, you have already found a suitable building contractor to tackle this home.
But capital is usually a different issue entirely. Should you go after a regular bank loan, you will end up waiting roughly 30-60 days up until the time the financing is approved and the money is accessible. Thus if you are anticipating a fast closing, you need to understand that this may set you back by a couple weeks, making you miss out on the home.
Furthermore, in case you have a less-than-perfect credit situation or do not have a routine source of income, it is usually harder to obtain bank financing, considering the tougher loan requirements banks have put in place in recent times. So will inadequate financing keep you from sticking to your ambitions? Under no circumstances, especially when Chestnut Ridge, New York hard money loans enable you to realize great things in the real estate world.
A hard money home loan in Chestnut Ridge provides what is regarded as crucial to most real estate transactions — a fast closing of only a few weeks and oftentimes even less. Additionally, loan amounts are made up to 70% loan-to-value of the "as is" home value, as established by a qualified appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, seem to be more costly than bank lending options. But when you consider these are not long-term mortgage loans, the interest rate may be misleading. As it pertains to short-term loans of a few years or even less, you should look at them identical to every other expense for your project. Once you've resold the home and have made a positive profit, you'll be able to get back this expense from the house — just like recovering the cost of brand-new kitchen appliances that you installed.
What's more, it's simple to be eligible for a a hard money mortgage, even in the event your credit score is not that extraordinary. Instead of focusing only on the borrower's credit score or source of income, Chestnut Ridge hard money lenders, who may be a private company or an individual person, authorize a loan as a result of assessing the property value, its marketability, where it is located, and the likelihood of recovering their capital if they have to foreclose the loan. Other criteria that affect an applicant's approval for a hard money real estate loan can include what amount of money he is able to put towards a down payment, his former experience as a real estate investor, and selling price of comparable, just recently sold properties nearby.
So in case you have found a wonderful fixer-upper with a huge probability of returns, you have also found yourself a hard money lender in Chestnut Ridge who is happy to provide financing for your fix and flip project. Enter your info into the form or get in touch with us via phone to talk about the property or properties you have in mind.
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