Hard Money Loans in Dallastown
You discovered this outstanding opportunity to rehab and flip this nice old home in a very good location and it looks like the deal you have been eagerly waiting on for quite some time. You've probably heard that veteran home flippers, like the married couple on HGTV's Flip or Flop, enjoy an impressive average profit margin of around forty to fifty thousand dollars. Undoubtedly, you also understand that their results are credited to the fact that they are experts, are well versed in hard money loans, they know market trends quite well and in addition, they know how to work an auction to purchase their homes at a reasonable price. However, you're convinced that your impressive rehab and remodeling skills will enable you to do an outstanding job on the house — additionally, you have already arranged to have one of the best building contractors in the area to take on the job.
But money is a separate issue entirely. A traditional lending institution, like for example a bank, takes no less than one to two months to approve the financing and hand over the monies. Since most home owners give preference to a fast closing, you might want to start looking for some other funding alternatives.
To add to it, banks have already been tightening their lending standards as of late, which makes it tough for people to receive a typical home loan if their credit circumstances are not flawless or he is lacking a regular salaried profession. So must you admit defeat and forego your ambition to get into fix and flips? Certainly not, considering that you could always use the Dallastown hard money loan approach to fund your home flipping project.
Should you obtain a hard money home loan in Dallastown, you will get what is perhaps most essential to real estate transactions throughout the country — a fast closing of about a couple weeks. What's more, the LTV value can reach up to 70% of the property's valuation, as determined by a competent appraiser. At first, hard money real estate loans, with starting interest rates of 10%, appear to be higher in price than bank loans. But when you appreciate that these are not long-term home loans, the rate may be misleading. As it pertains to short-term loans of a few years or even less, you should think about them just like you would other expenses for the project. After you rehab and sell off the home, recouping this expense is just like recuperating the cost of the stainless steel appliances you installed in the property.
Aside from that, hard money mortgages are not difficult to qualify for, regardless if you have poor credit. The customer's credit score is not the primary determining factor for Dallastown hard money lenders — in addition, they analyze the property, its market value, where it is located, and its ability to earn back their investment if everything does not go as planned. The amount that an applicant can put down beforehand towards the property or home, his real estate experience, and price range of equivalent homes in the vicinity are various other details that go into determining a person's suitability for a hard money real estate loan.
So if you have stumbled on an excellent fixer-upper with a high prospect of returns, you have also found yourself a hard money lender in Dallastown who is prepared to provide funding for your flipping project. Complete the form on this page or get in touch with us via phone to talk about your property or properties.
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