Hard Money Loans in Dickson City
A remarkable bargain on a fix and flip property located in an excellent subdivision shows up out of the blue — seems too good to be true. Many people know that capable professional flippers, along the lines of Tarek and Christina El Moussa who star in HGTV's reality flipping series, Fix or Flop, can generate an average profit of $40,000 to $50,000 on their home projects. And yes, they are helped in a major way by their professional experience, auction abilities and knowledge of hard money loans. Nonetheless, your rehab and renovation knowledge isn't bad either — in any case, you have already located the right general contractor to handle the home.
But where precisely can real estate investors get funds? A traditional lender, like for example a bank, takes at a minimum 1-2 months to authorize the financing and hand over the funds. With all the sellers looking for a fast closing, that doesn't appear like a good idea to you whatsoever.
As well as this, should you have an unfavorable credit score or do not have a consistent income, it is usually more difficult to be eligible for a a bank loan, with the tighter loan requirements banks have issued of late. So do you have to stop trying and forego your desire to venture off into real estate? Most certainly not, seeing as you also have the Dickson City hard money loan alternative.
A hard money home loan in Dickson City gives you what is probably most crucial to real estate investors — a quick closing time period of as few as fourteen days. Furthermore, hard money lenders are capable of doing lending up to 70% LTV of the home value, as estimated by a licensed third-party appraiser. With lending rates starting at about 10%, hard money real estate loans might seem, at first glance, to be more costly when compared with traditional bank lending products. But the term lengths for these loans are relatively short, making the rate less important. The cost of such short-term loans should be evaluated on par with every other expense that you might encounter in the course of the project. Right after you fix up and resell the home, recovering this expense is no different than recovering the expense for home appliances you put in the property.
Additionally, it is easy to be eligible for a hard money mortgage, even if your credit score is not that extraordinary. Dickson City hard money lenders do not authorize a loan solely judging by the customer's credit score — rather they will examine the home, its location and value, and the home's ability to pay back the loan on its own. Adding to this, if the borrower have proven experience in comparable real estate endeavors, can place down money for a down payment, and the cost of comparative properties in the neighborhood works in his favor, he has got an excellent shot of being approved to obtain a hard money real estate loan.
So any time you come across a very good and worthwhile flipping opportunity, feel comfortable knowing you will have a hard money lender in Dickson City, in a position to lend you the capital you may need. Complete the form or call us and let's talk about the property or properties you have in mind.
A loan specialist will be in touch shortly