Hard Money Loans in Dansville
You discovered this outstanding opportunity to rehab and flip this wonderful outdated property or home in a good location and it looks like the one you have been looking forward to for quite some time. Expert house flippers, similar to the young couple on Flip or Flop, HGTV's reality flipping show, are able to bring in a profit of $40-$50k as an average on more than one occasion. Without question, their past experiences rehabbing, understanding of hard money loans, familiarity with the housing market, and auction skills have been major factors to their results. Nonetheless, your rehab and remodeling skills aren't that bad either — in any case, you have already found a good licensed contractor to start the project.
But where precisely do real estate investors find funds? For those who go after an ordinary loan from the bank, you will need to wait somewhere around one to two months up until the mortgage loan is authorized and the money is ready to go. So if you're expecting a fast closing, you must realize that this could set you back by a couple of weeks, causing you to miss out on the house.
With banks introducing harder loan guidelines in the past several years, it's become more challenging for a self-employed person to obtain a home loan, particularly if his credit circumstances are not perfect. So must you admit defeat and abandon your desire to embark into the real estate market? Definitely not, because you always have the Dansville hard money loan alternative.
A hard money home loan in Dansville promises what is perhaps most crucial to real estate investors — a quick closing time of as few as two weeks. Also, hard money lenders frequently agree to lending up to 70% LTV of the home value, as identified by a certified third-party evaluator. At first glance, hard money real estate loans, with starting interest rates of 10%, could be seen as more pricey than bank financing. But the term lengths for these loans are rather short, which means the interest rate is less important. The cost of such short-term loans ought to be viewed much like every other expenditure that you would have to meet for the project. And once you've sold the property, recovering this expense is identical to recovering the expense for the kitchen and bath improvements you performed.
Furthermore, even someone with poor credit can easily be eligible for a hard money mortgage. Instead of focusing strictly on the applicant's credit score or wages, Dansville hard money lenders, who may be a privately owned company or an individual, approve a loan as a result of assessing the property value, how easy it will be to market, its location, and the odds of getting back their money in case they have to foreclose the loan. The amount that an applicant can put down beforehand for the house, his real estate experience, and selling price of equivalent properties in the neighborhood are additional factors that go into ascertaining a borrower's suitability for a hard money real estate loan.
If you happen to have stumbled upon a wonderful fixer-upper with a high prospect of returns, you've also found yourself a hard money lender in Dansville that's happy to provide funding for your fix and flip venture. Fill out the form on this page or get in touch with us via phone to discuss the project you have in mind.
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