Hard Money Loans in Clifton
Suppose that you've stumbled upon this truly good bargain for a fix and flip property located in a terrific neighborhood, and you are either a skilled real estate investor or a newbie who is looking to try out flipping houses. You may have heard that competent property flippers, much like the married couple on HGTV's Flip or Flop, enjoy a remarkable average profit margin close to forty to fifty thousand dollars. And sure, they are aided in a big way via their professional experience, auction abilities and knowledge of hard money loans. On the other hand, you're assured that your superb rehab and remodeling abilities will help you do a quality job for this property — furthermore, you have already lined up one of the best contractors in the area to work on the project.
But where can real estate investors obtain capital? For those who go after a regular bank loan, you will need to wait somewhere around 1-2 months until the financing is authorized and the funds are readily available. Due to the fact all the sellers are seeking a fast closing, that does not appear like a wise idea to you at all.
Moreover, should you have a sub-optimal credit situation or do not receive a regular income source, it is normally more challenging to obtain bank financing, considering the stricter loan criteria banks have introduced as of late. So does this mean you are without an option, but to drop your ambition to venture into rehabbing? Definitely not, given that you always have the Clifton hard money loan option.
When you get a hard money home loan in Clifton, you're going to get what's probably most essential to real estate negotiations throughout the country — a fast closing of roughly fourteen days. In addition, the LTV value can go up to 70% of the home value, as evaluated by a competent appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, seem to be higher priced than bank loans. But usually, the interest rate is not as useful a measure for these loans, since they aren't long-term loans. The price of such short-term loans ought to be evaluated on par with every other expenditure that you might encounter during the project. Right after you renovate and sell off the property, recuperating this expense is just like recuperating the money you spent for stainless steel appliances you placed into the house.
Apart from this, hard money mortgages are easy qualifying, even if you have got a weak credit score. The applicant's credit score is not the exclusive deciding factor for Clifton hard money lenders — additionally, they evaluate the piece of real estate, how much it is worth, where it is located, and its capability to return their investment if everything does not go as intended. On top of this, if the person can demonstrate prior experience in comparable real estate endeavors, can put down cash towards the down payment, and the cost of similar homes in the neighborhood works to his benefit, he has a really good chance of qualifying to get a hard money real estate loan.
So any time you come across an outstanding and worthwhile investment opportunity, be assured you'll have a hard money lender in Clifton, prepared to loan you the cash that you need. Submit the contact form or give us a call to talk about the project you have in mind.
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