Hard Money Loans in Clarks Summit
There is this outstanding opportunity to renovate and flip this wonderful outdated property in a very good part of town and it seems a lot like the deal you've been expecting for quite a while. Everyone knows that expert professional flippers, along the lines of Tarek and Christina El Moussa who star in HGTV's reality home flipping series, Fix or Flop, are able to generate an average profit of forty to fifty thousand dollars in their rehab business. And indeed, they are aided in a big way due to their professional know-how, auction skills and knowledge of hard money loans. Nevertheless, you're certain that your first class rehab and renovation talents can help you do an outstanding job on the home — furthermore, you already have arranged to have one of the best general contractors in town to take care of this project.
But funding can be a different issue entirely. A typical lending institution, for instance a bank, takes a minimum of 1-2 months to approve the mortgage and release the money. Since most home owners favor a fast closing, you might have to begin searching for other funding alternatives.
Moreover, should you have a less-than-perfect credit score or do not receive a regular income source, it usually is harder for you to be eligible for bank financing, with the more stringent loan criteria banks have put in place lately. So must you give up and abandon your desire to embark into the real estate market? Most certainly not, because you always have the Clarks Summit hard money loan alternative.
If you decide to opt for a hard money home loan in Clarks Summit, you will get what is probably most essential to real estate offers throughout the country — a very fast closing of about two weeks. Also, hard money lenders can approve funding up to 70% LTV of the property or home value, as established by a certified third-party appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, appear to be higher in price than bank lending options. But the time frames of these loans are comparatively short, which makes the interest rate much less important. Short-term loans of a couple of months to a handful of years are best thought of as cost of capital, much like every other financial outlay in connection with a project. Once you have resold the house and have made a good return, you can get back this expense from the home — the same as recovering the cost of brand-new appliances for the kitchen that you have put in.
Additionally, it isn't difficult to be eligible for a hard money mortgage, even if your credit score is not that great. Clarks Summit hard money lenders do not approve a loan exclusively on the basis of the borrower's credit score — instead they also look at the home, its location and value, and the home's ability to pay back the financing without the assistance of the borrower. Adding to this, if the person can demonstrate past experience in similar real estate projects, can put down cash for the down payment, and the value of comparative houses in the neighborhood works to his benefit, he has a really good chance of qualifying to obtain a hard money real estate loan.
So should you come across a very good and worthwhile flipping opportunity, be assured you will have a hard money lender in Clarks Summit, equipped to loan you the funds you will need. Submit the contact form on this page or get in touch with us via phone to discuss the project you have in mind.
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