Hard Money Loans in Delaware
There's this phenomenal opportunity to rehab and flip this nice out of date home in a good location and it seems like the one you have been expecting for quite some time. You may have heard that veteran house flippers, like the couple on HGTV's Flip or Flop, have an impressive average return close to forty to fifty thousand dollars. It goes without saying their past experiences rehabbing, knowledge of hard money loans, familiarity with the market, and auction talents have been large factors to their success. With that being said, you've recently been developing your rehab and renovation knowledge, have a very good general contractor arranged and are certain that you can do an impressive job on this house.
But capital is usually a separate problem entirely. For those who get in touch with a common lender, such as a bank for a loan, it's very likely going to take, at the very least, four to eight weeks for your acceptance to come through and the money to be furnished. Since the majority of home owners favor a fast closing, you might need to begin looking for additional financing options.
To add to it, banks have been tightening their lending criteria in recent years, which makes it difficult for someone to obtain a traditional loan if their credit situation is not flawless or he does not have a consistent salaried profession. So will inadequate funds keep you from sticking to your ambitions? Not at all, particularly when Delaware hard money loans enable you to achieve many amazing things in the real estate market.
A hard money home loan in Delaware gives you what's probably most important to real estate investors — a quick closing time period of as little as 14 days. Further, financing can be done for up to 70% loan-to-value of the as-is home's valuation, as calculated by a professional appraiser. At first glance, hard money real estate loans, with starting interest rates of 10%, could be seen as higher priced than bank financing. But once you appreciate that these loans are not long-term loans, the rate of interest may be misleading. When it comes to short-term loans of 1 or 2 years or less, you should look at them much like you would other expenses for the project. Once you've sold the home and have made a good financial gain, you're able to recover this expense from the house — just like recovering the cost of brand-new appliances for the kitchen that you installed.
Besides, hard money mortgages are not hard to qualify for, even when you have bad credit. Delaware hard money lenders do not approve a loan strictly on the basis of the customer's credit score — rather they will examine the property or home, its valuation and location, and the home's capacity to pay back the loan without the assistance of the person. How much of their own money an applicant can put down beforehand for the property, his past real estate experience, and price range of comparative homes in the area are other details that go into ascertaining a person's eligibility for a hard money real estate loan.
If you happen to have stumbled upon an excellent real estate opportunity with a significant prospect of returns, you have also stumbled upon a hard money lender in Delaware who is prepared to provide financing for your fix and flip project. Enter your info into the contact form on this page or get in touch with us via phone to discuss the project you have in mind.
A loan specialist will be in touch shortly