Hard Money Loans in Delaware City
There is this outstanding opportunity to rehab and flip this wonderful old condo in a very good area and it seems a lot like the one you've been wanting for a long time. You've probably heard that professional home flippers, such as the couple on HGTV's Flip or Flop, turn a remarkable average return of around $40,000 – $50,000. Naturally, you also understand that their great results can be attributed to the fact that they are industry experts, are proficient in hard money loans, they understand market trends quite well and they also know how to work an auction to buy their houses at an appropriate deal. With that being said, you have recently been cultivating your rehab and remodeling knowledge, have got a general contractor lined up and are certain that you will be able to do a bang up job on this house.
But funding is usually a different question altogether. When you go after a traditional loan via a bank, you will end up waiting around roughly 1 to 2 months until eventually the loan is approved and the funds are ready to go. Considering that all the sellers are seeking a fast closing, that does not seem like a wise idea to you whatsoever.
With banks bringing in harder loan standards in recent years, it has become more difficult for a self-employed individual to find a mortgage loan, especially if his credit situation is not optimal. So should you admit defeat and forego your ambition to get into fix and flips? Under no circumstances, particularly while Delaware City hard money loans will assist you to accomplish great things in real estate.
Should you obtain a hard money home loan in Delaware City, you have access to what's possibly most important to real estate transactions across the country — a fast closing of approximately 14 days. Furthermore, hard money lenders will often consent to funding up to 70% LTV of the property or home value, as determined by a professional third-party appraiser. With the interest rates starting at about 10%, hard money real estate loans may seem, at first glance, to be more costly when compared with traditional bank loans. But usually, the lending rate isn't as useful a measure for these loans, since they are not long-term loans. The price of such short-term loans should be evaluated on par with any other financial outlay that you would encounter in the course of the project. Once you have turned the house and have made a successful profit, you're able to get back this expense from the house — much like recouping the money necessary for the brand-new kitchen appliances that you've put in.
In addition, even an individual with weak credit can easily qualify for a hard money mortgage. The customer's credit score is not the single determining factor for Delaware City hard money lenders — additionally, they analyze the property, its market valuation, its location, and its capacity to return their financial commitment if things should not work out as planned. Adding to that, if the borrower can demonstrate past experience in comparable real estate projects, can put down cash towards the down payment, and the value of comparative properties in the area works in his favor, he has a very good shot of qualifying to obtain a hard money real estate loan.
Searching for a hard money lender in Delaware City to fund your fix and flip endeavor is not very challenging, so long as the opportunity in front of you is promising and has the right prospect for returns. Fill out the contact form or call us to discuss the project you have in mind.
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