Hard Money Loans in East Rutherford
An outstanding deal on a fix and flip property located in a very good neighborhood suddenly turns up — sounds so good that it's hard to believe. A majority of people know that capable professional flippers, along the lines of Tarek and Christina El Moussa who star in HGTV's reality flipping show, Fix or Flop, can make a typical profit of $40,000 to $50,000 in their rehab business. No need to explain that their past experiences rehabbing, knowledge of hard money loans, expertise in their housing market, and auction skills have had a big part in their successes. Nevertheless, you are assured that your superb rehab and remodeling abilities will enable you to do a great job for this property — furthermore, you have already lined up one of the best contractors in town to take on this job.
But how exactly can real estate investors find funds? A conventional lending institution, like for example a bank, takes at least one to two months to approve the financing and provide the money. Because most home owners would rather have a fast closing, it may be advisable to start seeking out other funding options.
Moreover, for those who have a sub-optimal credit score or don't have a conventional income source, it may be harder for you to be eligible for a bank loan, considering the more stringent loan criteria banks have put in place in recent times. So will a lack of funds keep you from pursuing your ambitions? Not at all, particularly when East Rutherford, New Jersey hard money loans enable you to accomplish great things in the real estate market.
A hard money home loan in East Rutherford provides what's possibly most important to real estate investors — a quick closing time of as little as 2 weeks. Besides that, hard money lenders are able to do funding up to 70% LTV of the property's valuation, as identified by a professional third-party evaluation. At first, hard money real estate loans, with starting interest rates of 10%, appear to be more pricey than bank lending options. But the lengths of these loans are quite short, which means the interest rate is less significant. The cost of such short-term loans ought to be viewed much like any other financial outlay that you will have to meet pertaining to the project. And as soon as you have flipped the property, recovering this expense is identical to recovering the expense for all the bathroom improvements you did.
Aside from that, hard money mortgages are not difficult to qualify for, whether or not you posses less-than-perfect credit. East Rutherford hard money lenders don't authorize a loan solely judging by the customer's credit score — rather they also analyze the property, its value and location, and the home's ability to pay back the loan on its own. On top of this, if the individual have proven experience in comparable real estate projects, can place down cash towards a down payment, and the value of comparable houses in the vicinity works to his benefit, he has a really good likelihood of being approved to obtain a hard money real estate loan.
So in case you have found a really good real estate opportunity with a high prospect of returns, you've also discovered a hard money lender in East Rutherford that's willing to finance your fix and flip project. Submit the form on this page or get in touch with us via phone to discuss your property.
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