Hard Money Loans in Edgewood
You discovered this phenomenal possibility for fixing and flipping this wonderful old house in a fantastic area and it seems a lot like the deal you've been wanting for quite some time. You may have heard that competent home flippers, such as the couple on HGTV's Flip or Flop, have an impressive average return close to forty to fifty thousand dollars. It goes without saying their past experiences rehabbing, knowledge of hard money loans, expertise in their market, and auction skills have had a big part in their success. Still, your rehab and remodeling knowledge isn't bad either — aside from that, you've already identified the right licensed contractor to tackle the job.
But how do real estate investors find capital? A standard lender, say for example a bank, takes at a minimum 1-2 months to authorize the financing and hand over the funds. So if you will be wishing for a fast closing, you have to recognize that this could cost you a couple of weeks, causing you to lose out on the sale.
Moreover, in case you have an unfavorable credit rating or do not receive a consistent income source, it usually is more difficult to obtain a bank loan, seeing the more stringent loan criteria banks have issued of late. So does that leave you with no other option, but to abandon your aspiration of venturing into the fix and flip business? Certainly not, because you could always use the Edgewood hard money loan approach to fund your flipping project.
A hard money home loan in Edgewood promises what is perhaps most important to real estate investors — a very fast closing in as few as 14 days. Further, financing can be made up to 70% loan-to-value of the as-is home value, as calculated by a professional appraiser. At first glance, hard money real estate loans, with starting interest rates of 10%, seem to be more costly than bank lending products. But when you consider these are not long-term home loans, the interest rate can be misleading. Short-term loans of several months to a handful of years are best understood as cost of capital, much like all other expenditures in connection with a project. Once you've resold the property or home and have made a good financial gain, you'll be able to reclaim this expense from the property or home — very much like recuperating the cost of brand-new appliances for the kitchen that you have put in.
Apart from this, hard money mortgages are not difficult to qualify for, even if you have less-than-perfect credit. The customer's credit score is not the exclusive determining factor for Edgewood hard money lenders — they also look at the property, what is it valued at, its location, and its potential to return their investment if things should not go as intended. Other factors that impact a customer's approval for a hard money real estate loan include how much he is in a position to put towards a down payment, his prior experience being a real estate investor, and price of similar, fairly recently sold homes in the vicinity.
So should you come across a really good and profitable investment opportunity, relax knowing you will have a hard money lender in Edgewood, able to loan you the cash you need. Enter your info into the contact form or call us to talk about your property or properties.
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