Hard Money Loans in Elmwood Park
A remarkable buy on a fix and flip opportunity in a very good subdivision shows up out of the blue — seems too good to be true. You've probably heard that veteran property flippers, like the married couple on HGTV's Flip or Flop, have an impressive average profit margin close to forty to fifty thousand dollars. And without a doubt, they are helped in a major way as a result of their professional experience, auction skills and knowledge of hard money loans. Nonetheless, your rehab and renovation skills aren't that bad either — aside from that, you've already identified the right licensed contractor to start the project.
But where do you obtain the needed funding for flipping? A typical lending institution, like for example a bank, takes at least 1 to 2 months to consent to the mortgage and release the monies. Given that home owners would rather have a fast closing, it may be advisable to start looking for other financing alternatives.
On top of this, banks have been tightening up their lending criteria in recent times, rendering it more difficult for someone to obtain an ordinary home loan if their credit rating is not perfect or he does not have a consistent salaried profession. So does this leave you with no other option, but to drop your dream to venture into flipping? Never, on the grounds that you can always go the Elmwood Park hard money loan route to pay for your rehab project.
If you decide to put in an application for a hard money home loan in Elmwood Park, you will get what is probably most important to real estate transactions across the country — a fast closing of about 2 weeks. Further, loan amounts can be made up to 70% loan-to-value of the as-is house value, as deemed by a licensed appraiser. At first, hard money real estate loans, with starting interest rates of 10%, seem to be costlier than bank lending options. But in reality, the lending rate isn't as useful a measure for these loans, because they are not long-term loans. Short-term loans of a couple months to a handful of years are best thought of as cost of capital, very much like every other expenditure related to a project. Once you've turned the home and have made a positive financial gain, you can recover this expense from the property or home — very much like recouping the cost of brand-new kitchen appliances that you have put in.
Apart from this, hard money mortgages are not hard to qualify for, whether or not you posses poor credit. The applicant's credit score isn't the sole deciding factor for Elmwood Park hard money lenders — additionally, they analyze the property, how much it is worth, where it is located, and its potential to earn back their investment if everything does not work out as planned. Additional factors that impact an individual's eligibility for a hard money real estate loan can include the amount he can put towards a down payment, his previous experience being a real estate investor, and price of similar, just recently sold residences in the vicinity.
So any time you run into an outstanding and lucrative investment opportunity, rest assured you'll have a hard money lender in Elmwood Park, in a position to lend you the capital you need. Fill out the form on this page or call us to discuss your property.
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