Hard Money Loans in Ellwood City
You discovered this amazing opportunity to fix and flip this nice out of date condo in a very good part of town and it seems like the deal you have been eagerly waiting on for quite a while. You've probably heard that professional property flippers, much like the married couple on HGTV's Flip or Flop, enjoy an impressive average profit margin close to $40,000 – $50,000. Of course, you also are aware that their success can be credited to the fact that they're professionals, are proficient in hard money loans, they know the marketplace really well and they also are good at working an auction for getting an appropriate price. Nevertheless, you are convinced that your first class rehab and remodeling knowledge will help you do a great job on the project — what's more, you have already arranged to have one of the finest contractors in town to handle the project.
But where precisely do real estate investors find funding? In the event you go after a normal loan via a bank, you will have to wait approximately 1 to 2 months up until the time the loan is approved and your funding is ready. With the home owners wanting a fast closing, that doesn't appear like a wise idea to you whatsoever.
What's more, for those who have a sub-optimal credit rating or don't receive a regular income, it is usually tougher for you to be eligible for a bank financing, seeing the more stringent loan requirements banks have put in place of late. So do you have to give up and forego your aspiration to embark into fix and flips? Certainly not, due to the fact you can always use the Ellwood City hard money loan approach to fund your rehab project.
A hard money home loan in Ellwood City offers what is considered vital to most real estate sales — a quick closing of only a few weeks and at many times even less. What's more, the LTV value can range up to 70% of the home value, as determined by a competent appraiser. With rates starting out around 10%, hard money real estate loans might seem, at first, to be higher in price as compared with traditional bank lending products. But in reality, the lending rate is not as relevant for these loans, since they aren't long-term financing. Short-term loans of a couple months to a few years are best thought of in terms of cost of capital, very much like any other financial outlay associated with a project. When you have turned the property or home and have made a good gain, you're able to reclaim this expense from the property or home — just like recovering the money necessary for the brand-new kitchen appliances that you installed.
Besides, hard money mortgages are easy qualifying, even if you have got bad credit. Ellwood City hard money lenders do not take on a loan strictly on the basis of the customer's credit score — instead they additionally examine the property, its value and location, and the home's capability to pay back the loan on its own. Several other factors that affect a customer's acceptance for a hard money real estate loan include the amount he can put into a down payment, his former experience being a real estate investor, and price range of comparative, just recently sold homes in the neighborhood.
So should you come across a good and profitable investment opportunity, feel comfortable knowing you will have a hard money lender in Ellwood City, ready to loan you the capital you need. Fill out the contact form on this page or get in touch with us via phone and let's talk about the property or properties you have in mind.
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