Hard Money Loans in Dover
Suppose that you've encountered this really great deal on a fix and flip property you found in an ideal neighborhood, and you happen to be either a skilled real estate investor or a first-timer who wants to try out flipping homes. Everyone knows that expert professional flippers, like Tarek and Christina El Moussa from HGTV's reality home flipping series, Fix or Flop, are able to make an average profit of forty to fifty thousand dollars in their rehab business. And without a doubt, they are aided in a big way due to their professional knowledge, auction skills and knowledge of hard money loans. However, you are certain that your superb rehab and remodeling skills will enable you to do a quality job for this house — additionally, you've already lined up one of the finest building contractors in the business to handle the job.
But how do you get the necessary capital for flipping? In the event you opt for an ordinary loan from the bank, you will end up waiting roughly 30-60 days before the mortgage loan is approved and the funding is readily available. Because most sellers would rather have a fast closing, it may be best to begin searching for some other funding options.
On top of this, banks have been tightening up their lending criteria in recent times, which makes it hard for a person to obtain an ordinary loan if their credit circumstances are not perfect or he is lacking a regular salaried profession. So will a shortage of funds prevent you from sticking with your aspirations? Certainly not, due to the fact you can always use the Dover hard money loan approach to fund your rehab project.
A hard money home loan in Dover can provide what is considered crucial to most real estate transactions — a very fast closing of only a few weeks and at times even less. Aside from that, loan amounts can be made up to 70% loan-to-value of the "as is" valuation, as calculated by a licensed appraiser. At first, hard money real estate loans, with starting interest rates of 10%, could be seen as more costly than bank financing. But the lengths of these loans tend to be rather short, which makes the interest rate less important. The cost of such short-term loans ought to be viewed on par with any other financial outlay that you might encounter in the course of the project. Right after you renovate and sell off the home, recovering this expense is just like recovering the cost of the home appliances you put in the house.
Moreover, even an individual with low credit will be able to qualify for a hard money mortgage. Dover hard money lenders don't approve a loan solely on the basis of the customer's credit score — rather they also look at the property or home, its valuation and location, and the home's capability to pay back the financing on its own. How much a person can put upfront for the property, how much experience he has in real estate investments, and price range of comparative properties in the same neighborhood are other factors that go into determining an applicant's qualification for a hard money real estate loan.
So if you have stumbled upon an excellent real estate opportunity with a significant chance of returns, you have also stumbled upon a hard money lender in Dover that's ready to provide funding for your rehab projects. Submit the form or give us a call and let's talk about your project.
A loan specialist will be in touch shortly