Hard Money Loans in Dobbs Ferry
A fabulous bargain on a fix and flip opportunity located in a good subdivision shows up out of the blue — sounds so good that it is hard to believe. Many people know that expert professional flippers, like Tarek and Christina El Moussa from HGTV's reality home flipping series, Fix or Flop, can turn a typical profit of $40,000 to $50,000 on their flips. Undoubtedly, you also recognize that their successes are credited to the simple fact that they are industry experts, are well versed in hard money loans, they understand the market quite well and additionally, they know how to work an auction for getting a reasonable deal. Nonetheless, your rehab and remodeling knowledge isn't that bad either — besides, you have already located the right general contractor to start this job.
But where do you obtain the necessary financing for home flipping? A standard lender, say for example a bank, takes no less than one to two months to approve the mortgage and hand over the capital. Thus if you happen to be hoping for a fast closing, you must be aware that this may set you back by weeks, making you miss out on the home.
With banks introducing harder loan criteria in the past several years, it's become tougher for a self-employed individual to obtain a home loan, especially when his credit rating is not optimal. So does this mean you are without an option, but to drop your ambition of venturing into flipping? Definitely not, seeing as you always have the Dobbs Ferry, New York hard money loan option.
A hard money home loan in Dobbs Ferry gives you what's possibly most essential to real estate investors — a very fast closing time period of as few as 14 days. Furthermore, hard money lenders will often consent to funding up to 70% LTV of the home value, as calculated by a licensed third-party evaluation. With the loan rates starting around 10%, hard money real estate loans may look, initially, to be more expensive compared to conventional bank lending products. But the time frames of these loans tend to be comparatively short, which makes the rate less significant. The cost of such short-term loans ought to be looked at much like any other expenditure that you will encounter in the course of the project. Once you've resold the property or home and have made a positive gain, you'll be able to recover this expense from the property — very much like recuperating the money spent on the brand-new appliances for the kitchen that you've put in.
Additionally, it is easy to qualify for a hard money mortgage, even if your credit rating is not that extraordinary. The person's credit score is not the lone deciding factor for Dobbs Ferry hard money lenders — additionally, they consider the piece of real estate, its market value, where it is located, and its ability to earn back their investment if things do not go as planned. Adding to this, if the individual can demonstrate past experience in comparable real estate projects, can place down money for a down payment, and the value of similar properties in the area works to his benefit, he will have a really good chance of qualifying for a hard money real estate loan.
If you happen to have stumbled on a really good fixer-upper with a high chance of returns, you have also stumbled upon a hard money lender in Dobbs Ferry that is happy to provide funding for your fix and flip project. Fill out the form on this page or get in touch with us via phone to talk about your project.
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