Hard Money Loans in Cornwall-on-Hudson
Imagine you've run into this really great bargain on a fix and flip property located in a great neighborhood, and you are either a skilled real estate investor or a newbie who is looking to try his hand at flipping. Professional house flippers, like the young married couple on Flip or Flop, HGTV's reality flipping show, are able to earn a gain of $40-$50k on the majority of projects. And sure, they are helped in a major way as a result of their professional experience, auction expertise and knowledge of hard money loans. That said, you've likewise been cultivating your rehab and remodeling knowledge, have a building contractor lined up and are positive that you will be able to do an impressive job on this house.
But how can real estate investors obtain financing? A typical lending institution, say for example a bank, takes no less than one to two months to approve the mortgage and release the money. So if you will be looking for a fast closing, you need to recognize that this may set you back by a couple weeks, causing you to lose out on the home.
With banks establishing more challenging loan requirements in recent years, it's become more difficult for a self-employed individual to obtain a mortgage loan, especially if his credit situation is not perfect. So does that mean you are without an option, but to give up your dream to venture into flipping? Under no circumstances, especially while Cornwall-on-Hudson hard money loans enable you to realize great things in the real estate world.
When you apply for a hard money home loan in Cornwall-on-Hudson, you're going to get what's possibly most important to real estate offers throughout the country — a fast closing of roughly 14 days. Besides that, hard money lenders are able to do lending up to 70% LTV of the property value, as calculated by a qualified third-party evaluator. With the lending rates starting at about 10%, hard money real estate loans might seem, at first, to be more pricey when compared with traditional bank financing. But in reality, the interest rate isn't as relevant for these loans, because they will never be long-term loans. Short-term loans of a couple of months to a handful of years are best approached as cost of capital, much like any other financial outlay involved with a project. When you have resold the house and have made a successful financial gain, you can get back this expense from the property or home — much like recouping the cost of brand-new kitchen appliances that you've installed.
What's more, it's easy to be eligible for a a hard money mortgage, even in the event your credit situation is not that impressive. Cornwall-on-Hudson hard money lenders don't authorize a loan exclusively judging by the applicant's credit score — rather they also analyze the property, its valuation and location, and the home's ability to pay back the loan independent of the person. How much of their own money an individual can put upfront towards the home, how much experience he has in real estate investments, and price range of comparative homes in the neighborhood are various other factors that go into determining an individual's suitability for a hard money real estate loan.
Finding a hard money lender in Cornwall-on-Hudson to fund your real estate project is not difficult, so long as the opportunity in front of you is promising and boasts a strong potential for returns. Submit the contact form or give us a call and let's discuss your property or properties.
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