Hard Money Loans in Edgewater
Suppose that you've stumbled upon this really great deal for a fix and flip property located in a great neighborhood, and you're either a seasoned real estate investor or a first-timer who hopes to try his hand at flipping. You've probably heard that competent home flippers, such as the married couple on HGTV's Flip or Flop, have an impressive average profit near $40,000 – $50,000. And yes, they are helped in a big way by their professional know-how, auction expertise and understanding of hard money loans. With that being said, you have recently been developing your rehab and remodeling knowledge, have a very good licensed contractor arranged and are confident that you're capable of doing a great job on this house.
But how exactly can real estate investors find funding? When you apply for a regular loan from the bank, you will wind up waiting around roughly one to two months until the financing is approved and the funds are ready. So if you happen to be looking for a fast closing, you must understand or know that this could set you back by a few weeks, causing you to miss out on the home.
What's more, should you have an unfavorable credit rating or do not have a regular income source, it usually is tougher for you to be eligible for bank financing, considering the tighter loan criteria banks have introduced of late. So do you have to give up and abandon your dream to embark into real estate? Most certainly not, seeing as you always have the Edgewater, New Jersey hard money loan option.
A hard money home loan in Edgewater offers you what is deemed vital to most real estate transactions — a quick closing of just a few weeks and at many times even less. Also, hard money lenders are capable of doing funding up to 70% LTV of the home value, as determined by a credentialed third-party appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, could be seen as more expensive than bank financing. But usually, the rate of interest isn't as useful a measure for these loans, simply because they are not long-term loans. Short-term loans of a couple months to a few years are best understood in terms of cost of capital, the same as all other expenses in connection with a project. When you have sold the property and have made a successful profit, you can recoup this expense from the house — the same as recouping the cost of brand-new kitchen appliances that you installed.
Also, it is simple to obtain a hard money mortgage, even when your credit score is not that impressive. Rather than focusing solely on the person's credit score or source of income, Edgewater hard money lenders, who may be a private company or an individual person, authorize a loan as a result of assessing the home value, its salability, its location, and the probability of recuperating their money in the event of foreclosure. On top of this, if the applicant have proven experience in comparable real estate ventures, can put down money towards a down payment, and the value of comparative houses in the vicinity works in his favor, he has a good chance of qualifying to obtain a hard money real estate loan.
So if you have stumbled on a really good home to flip with a significant chance of returns, you have also found yourself a hard money lender in Edgewater that's prepared to fund your flipping venture. Fill out the form on this page or get in touch with us via phone to discuss the property you have in mind.
A loan specialist will be in touch shortly