Hard Money Loans in Dryden
Suppose that you've encountered this truly good bargain on a fix and flip property located in a great location, and you're either an experienced real estate investor or a newbie who hopes to try out flipping homes. You've heard that professional house flippers, much like the husband and wife on HGTV's Flip or Flop, enjoy a remarkable average profit margin near $40,000 – $50,000. Without question, their past experiences rehabbing, understanding of hard money loans, expertise in their housing market, and auction talents have been major factors to their successes. Still, your rehab and remodeling skills aren't that bad either — in any case, you have already located the right licensed contractor to tackle the job.
But where do real estate investors obtain capital? A typical lender, say for example a bank, takes a minimum of 1-2 months to authorize the mortgage and release the cash. Due to the fact all the sellers are wanting to find a fast closing, that does not seem like a good idea to you at all.
On top of this, banks have been tightening their lending criteria as of late, making it hard for someone to get a regular loan if their credit rating is not flawless or he does not possess a consistent salaried job. So does this mean you have no option, but to give up your dream to venture into flipping? Definitely not, seeing as you also have the Dryden hard money loan alternative.
If you decide to apply for a hard money home loan in Dryden, you will get what's probably most vital to real estate transactions across the country — a quick closing of around a couple weeks. Additionally, loans can be done for up to 70% loan-to-value of the "as is" house value, as established by a licensed appraiser. With the interest rates starting near 10%, hard money real estate loans might appear, at first glance, to be more costly compared to conventional bank financing. But usually, the interest rate is not as useful a measure for these loans, given that they will never be long-term financing. Short-term loans of several months to a few years are best approached as cost of capital, much like all other expenditures associated with a project. When you have resold the house and have made a successful gain, you're able to recover this expense from the property or home — very much like recouping the money necessary for the brand-new home appliances that you've installed.
Furthermore, even individuals with poor credit can still be eligible for a hard money mortgage. Dryden hard money lenders don't approve a loan solely based on the customer's credit score — instead they additionally analyze the property or home, its valuation and location, and the home's capacity to pay back the loan independent of the borrower. On top of that, if the individual can demonstrate prior experience in similar real estate projects, can place down money for the down payment, and the price of similar properties in the area works in his favor, he stands a good chance of being eligible to obtain a hard money real estate loan.
So should you come across a very good and worthwhile investment opportunity, feel comfortable knowing you'll have a hard money lender in Dryden, ready to loan you the funds you may need. Fill out the contact form on this page or call us and let's talk about the property or properties you have in mind.
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