Hard Money Loans in Collingdale
A fantastic bargain on a fix and flip property in a nice subdivision suddenly shows up — sounds too good to be true. Professional home flippers, like the young couple on Flip or Flop, HGTV's reality flipping series, are able to earn a gain of forty to fifty grand on average. No need to explain that their rehabbing experience, understanding of hard money loans, familiarity with the housing market, and auction talents have been major factors to their success. That said, you have recently been brushing up your rehab and renovation skills, have a very good general contractor ready for the project and are certain that you will be able to do an impressive job for this property.
But capital is a different problem entirely. When you go after a regular bank loan, you will wind up waiting roughly 4-8 weeks up until the financing is approved and the money is accessible. So if you will be expecting a fast closing, you must be aware that this could cost you weeks, causing you to miss out on the sale.
On top of this, banks have been tightening their lending criteria in recent times, which makes it tough for someone to receive a regular loan if their credit rating is not perfect or he does not possess a regular salaried profession. So must you stop trying and abandon your aspiration to get into fix and flips? Never, because you can always go the Collingdale hard money loan route to fund your rehab project.
A hard money home loan in Collingdale provides what is deemed vital to many real estate sales — a fast closing of only a 2-3 weeks and sometimes less. Besides that, hard money lenders can do loans up to 70% LTV of the property value, as calculated by a professional third-party evaluation. Some individuals regard hard money real estate loans to be higher in price than ordinary financing, considering interest rates of such loans commonly start out at 10%. But the time frames of these loans tend to be rather short, making the interest rate much less significant. Short-term loans of a couple months to a few years are best approached as cost of capital, similar to any other expenditure in connection with a project. After you renovate and resell the property, recouping this expense is just like recuperating the one for stainless steel appliances you installed in the place.
Apart from this, hard money mortgages are easy qualifying, even in the event you have got less-than-perfect credit. As an alternative for focusing exclusively on the applicant's credit score or source of income, Collingdale hard money lenders, who could be a privately owned company or an individual, approve a loan as a result of evaluating the property value, ease of marketability, its location, and the likelihood of recovering their capital should they have to foreclose the loan. How much money an applicant can put down beforehand for the property or home, his real estate experience, and price range of comparable homes in the neighborhood are additional factors that go into ascertaining a borrower's qualification for a hard money real estate loan.
So any time you come across a really good and profitable flipping opportunity, relax knowing you will have a hard money lender in Collingdale, prepared to loan you the cash you'll need. Submit the form or give us a call and let's discuss the property or properties you have in mind.
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