Hard Money Loans in Cortland
Suppose that you've come across this truly good deal for a fix and flip property located in an ideal neighborhood, and you're either a seasoned real estate investor or a first-timer who really wants to try his hand at flipping. Expert property flippers, like the young couple on Flip or Flop, HGTV's reality flipping program, are able to bring in a gain of $40-$50k on average. Naturally, you also understand that their results can be credited to the fact that they are industry experts, are knowledgeable in hard money loans, they know market trends quite well and in addition, they are good at working an auction to buy their homes at a reasonable deal. Nonetheless, your rehab and renovation skills aren't that bad either — aside from that, you've already identified an ideal building contractor to take on the project.
But how exactly do real estate investors obtain funds? In the event you get in touch with a regular lending institution, like a bank for financing, it is very likely going to take, at the very least, four to eight weeks for your approval to be completed and the funds to be distributed. Since the majority of home owners would rather have a fast closing, you might want to start searching for additional financing alternatives.
With banks adding harder loan criteria in the past few years, it is now harder for a self-employed individual to get a mortgage loan, especially if his credit situation is not flawless. So does that mean you have no option, but to drop your dream of getting into home renovating? Definitely not, because you always have the Cortland, New York hard money loan option.
A hard money home loan in Cortland offers what's considered vital to most real estate sales — a very fast closing of just a few weeks and more often than not less. Further, financing can be made up to 70% loan-to-value of the as-is property's valuation, as calculated by a professional appraiser. Some individuals consider hard money real estate loans to be more costly than standard loans, considering lending rates for these loans typically start at 10%. But the term lengths for these loans are rather short, making the rate far less significant. Short-term loans of a couple months to a handful of years are best approached as cost of capital, similar to all other expenditures involved with a project. Right after you remodel and sell off the property, recouping this expense is no different than recovering the expense for home appliances you installed in the property.
Furthermore, even individuals with bad credit can still qualify for a hard money mortgage. The applicant's credit score isn't the exclusive determining factor for Cortland hard money lenders — they also examine the house, what is it valued at, its location, and its capability to bring back their investment if everything does not go as intended. The amount that an individual can put down beforehand for the house, his real estate experience, and selling price of comparative properties in the area are various other details that go into determining an applicant's qualification for a hard money real estate loan.
So if you have found a wonderful fixer-upper with a high probability of returns, you've also discovered a hard money lender in Cortland who's happy to finance your flipping venture. Fill out the contact form on this page or call us and let's discuss your project.
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