Hard Money Loans in Doylestown
Suppose that you've stumbled upon this really great deal for a fix and flip property in a terrific location, and you are either a skilled real estate investor or a newbie who is looking to try his hand at flipping. You've probably heard that competent home flippers, similar to the married couple on HGTV's Flip or Flop, turn a remarkable average return of around $40,000 – $50,000. Naturally, you also realize that their results can be attributed to the fact that they're experts, are proficient in hard money loans, they know the marketplace quite well and they also are good at working a public auction for getting a reasonable price. Having said that, you have likewise been brushing up your rehab and renovation skills, have a contractor arranged and are certain that you can do a great job on this property.
But where do you find the necessary financing for flipping? A traditional lending institution, for instance a bank, takes a minimum of 1-2 months to authorize the financing and release the cash. With the sellers wanting a fast closing, that does not appear to be a wise idea to you whatsoever.
Moreover, in case you have a sub-optimal credit rating or don't receive a conventional source of income, it may be more challenging for you to be eligible for a bank loan, considering the tighter loan requirements banks have introduced of late. So does that mean you have no option, but to drop your aspiration of venturing into rehabbing? Never, because you can always go the Doylestown hard money loan route to finance your home renovating project.
If you put in an application for a hard money home loan in Doylestown, you will get what is possibly most vital to real estate offers throughout the country — a fast closing of around 2 weeks. Plus, the LTV value can range up to 70% of the home value, as evaluated by a competent appraiser. With lending rates starting out near 10%, hard money real estate loans might appear, initially, to be more costly when compared with conventional bank loans. But when you appreciate that these loans are not long-term home loans, the rate of interest may be misleading. Short-term loans of a couple months to a few years are best thought of as cost of capital, very much like all other expenses associated with a project. Right after you rehab and sell the property, recuperating this expense is just like recouping the one for home appliances you put in the place.
Apart from this, hard money mortgages are not difficult to qualify for, regardless if you have got less-than-perfect credit. Doylestown hard money lenders don't approve a loan strictly on the basis of the customer's credit score — rather they will evaluate the property or home, its location and value, and the property's ability to pay back the financing by itself. On top of that, if the applicant can demonstrate prior experience in equivalent real estate endeavors, can put down cash towards a down payment, and the value of equivalent houses in the area works in his favor, he has an excellent shot of qualifying to obtain a hard money real estate loan.
So in case you have stumbled on a wonderful fixer-upper with a huge prospect of returns, you have also found yourself a hard money lender in Doylestown who is ready to finance your fix and flip ventures. Fill out the contact form or call us and let's discuss the property or properties you have in mind.
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