Hard Money Loans in Coxsackie
An outstanding deal on a fix and flip opportunity located in a very good neighborhood suddenly turns up — sounds too good to be true. Most folks know that knowledgeable professional flippers, such as Tarek and Christina El Moussa who star in HGTV's reality home flipping show, Fix or Flop, can readily make an average profit margin of $40,000 to $50,000 on their home projects. And sure, they are helped in a big way by their professional experience, auction expertise and knowledge of hard money loans. Still, your rehab and renovation knowledge isn't bad either — in any case, you have already found the right licensed contractor to start the project.
But how do real estate investors obtain financing? For those who go after a conventional bank loan, you will have to wait somewhere around 1 to 2 months up until the money is approved and the money is ready. So if you're wishing for a fast closing, it's important to understand that this may cost you a few weeks, making you lose out on the sale.
To add to it, banks have been tightening their lending requirements in recent years, rendering it more difficult for people to obtain a conventional loan if their credit score is not flawless or he doesn't have a regular salaried profession. So should you stop trying and abandon your ambition to venture into fix and flips? By no means, due to the fact you can always go the Coxsackie hard money loan route to finance your home renovating project.
If you opt for a hard money home loan in Coxsackie, you'll get what is perhaps most essential to real estate negotiations across the country — a quick closing of around 2 weeks. Plus, the LTV value can go up to 70% of the home value, as estimated by a certified appraiser. A number of people believe hard money real estate loans to be more expensive than customary loans, considering lending rates for these loans generally start at 10%. But once you consider these are not long-term loans, the interest rate tends to be misleading. The price tag on such short-term loans should be looked at on par with any other expense that you will have to meet for the project. After you renovate and unload the home, recuperating this expense is the same as recovering the money you spent for stainless steel appliances you placed into the place.
Apart from this, hard money mortgages are not difficult to qualify for, even when you posses very bad credit. Coxsackie hard money lenders do not take on a loan solely based on the customer's credit score — instead they will analyze the property or home, its location and value, and the home's ability to pay back the loan by itself. Additional factors that impact a customer's eligibility for a hard money real estate loan can include how much he is able to put into a down payment, his prior experience as a real estate investor, and price range of similar, recently sold homes nearby.
So should you come across a good and lucrative investment opportunity, relax knowing you will have a hard money lender in Coxsackie, equipped to loan you the funds you need. Complete the form or call us to discuss the project you have in mind.
A loan specialist will be in touch shortly