Hard Money Loans in East Stroudsburg
Suppose that you've come across this really great deal for a fix and flip property in an ideal neighborhood, and you are either a seasoned real estate investor or a first-timer who is looking to try out flipping homes. Most folks know that capable professional flippers, such as Tarek and Christina El Moussa who star in HGTV's reality home flipping program, Fix or Flop, can readily make a typical profit margin of forty to fifty thousand dollars on their home projects. Undoubtedly, you also know that their successes can be credited to the simple fact that they are experts, are proficient in hard money loans, they know the market quite well and furthermore, they are good at working an auction to purchase their houses at a good price. Still, your rehab and remodeling skills aren't bad either — aside from that, you have already located a suitable contractor to take on the home.
But where can real estate investors find funds? A traditional lending institution, for instance a bank, takes a minimum of 1-2 months to approve the financing and provide the funds. So if you will be looking for a fast closing, it is important to recognize that this could cost you a couple weeks, making you lose out on the opportunity.
To add to it, banks have been tightening up their lending standards as of late, making it difficult for people to receive an ordinary home loan if their credit situation is not flawless or he does not possess a regular salaried occupation. So will a lack of funding keep you from pursuing your ambitions? Definitely not, seeing as you also have the East Stroudsburg hard money loan alternative.
If you apply for a hard money home loan in East Stroudsburg, you're going to get what is probably most vital to real estate offers across the country — a very fast closing of about fourteen days. Further, loans can be made up to 70% loan-to-value of the as-is value, as deemed by a professional appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, could be seen as more pricey than bank loans. But usually, the lending rate isn't as pertinent for these loans, since they are not long-term financing. When it comes to short-term loans of one or two years or even less, you should consider them similar to every other expenditure for your project. Right after you fix up and sell off the house, recouping this expense is just like recuperating the money you spent for new kitchen appliances you placed into the house.
Aside from that, hard money mortgages are easy qualifying, even when you posses a weak credit score. As an alternative for focusing strictly on the applicant's credit score or source of income, East Stroudsburg hard money lenders, who may be a private company or an individual person, authorize a loan as a result of assessing the property value, its salability, where it is located, and the odds of recovering their money should they have to foreclose the loan. Adding to that, if the person have proven experience in comparable real estate ventures, can put down money for a down payment, and the cost of similar houses in the area works in his favor, he stands an excellent chance of qualifying for a hard money real estate loan.
So if you have found a really good home to flip with a high probability of returns, you've also found yourself a hard money lender in East Stroudsburg who's ready to provide funding for your flipping ventures. Enter your info into the contact form on this page or give us a call to talk about the project you have in mind.
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