Hard Money Loans in Curwensville
Suppose that you've run into this excellent deal on a fix and flip property located in an ideal neighborhood, and you are either an experienced real estate investor or a newbie who wants to try his hand at flipping. You've probably heard that competent house flippers, similar to the husband and wife on HGTV's Flip or Flop, turn a remarkable average profit close to $40,000 – $50,000. It goes without saying their rehabbing experience, knowledge of hard money loans, expertise in their housing market, and auction skills have been large factors to their success. Still, your rehab and renovation knowledge isn't bad either — aside from that, you have already found the right building contractor to tackle the job.
But financing can be a different question entirely. A traditional lender, say for example a bank, takes at a minimum one to two months to approve the financing and release the monies. With all the home owners seeking a fast closing, that doesn't appear like a good option to you in the slightest.
With banks adding tougher loan requirements in the past few years, it's become more difficult for a self-employed individual to find a home loan, particularly if his credit rating is not flawless. So will a shortage of funding stop you from following your dream? Most certainly not, seeing as you always have the Curwensville hard money loan option.
A hard money home loan in Curwensville offers you what is considered vital to most real estate transactions — a very fast closing of only a few weeks and oftentimes less. Also, hard money lenders frequently agree to lending up to 70% LTV of the property or home value, as determined by a credentialed third-party evaluator. At first glance, hard money real estate loans, with starting interest rates of 10%, seem to be higher priced than bank lending products. But the time frames of these loans tend to be comparatively short, making the interest rate less important. Short-term loans of several months to a handful of years are best approached as cost of capital, much like any other expenditure involved with a project. After you fix up and resell the house, recuperating this expense is the same as recuperating the expense for new kitchen appliances you installed in the home.
Besides, hard money mortgages are easy qualifying, regardless if you have got bad credit. Rather than focusing strictly on the borrower's credit score or wages, Curwensville hard money lenders, who could be a private company or an individual person, approve a loan as a result of assessing the home value, ease of marketability, where it is located, and the odds of recouping their capital in case of foreclosure. Several other factors that have an impact on a borrower's eligibility for a hard money real estate loan include the amount he is able to put towards a down payment, his past experience as a real estate investor, and price of similar, recently sold properties nearby.
So in case you have stumbled on an excellent fixer-upper with a huge prospect of returns, you've also found yourself a hard money lender in Curwensville who is prepared to provide funding for your flipping venture. Enter your info into the contact form or get in touch with us via phone and let's discuss the project you have in mind.
A loan specialist will be in touch shortly