Hard Money Loans in Elmwood Park
Suppose that you've come across this excellent bargain on a fix and flip property in a great location, and you're either a skilled real estate investor or a first-timer who hopes to try out flipping homes. Most folks know that capable professional flippers, such as Tarek and Christina El Moussa from HGTV's reality home flipping program, Fix or Flop, can readily make a typical profit of $40,000 to $50,000 on their home projects. And without a doubt, they are aided in a big way by their professional knowledge, auction skills and familiarity with hard money loans. Still, your rehab and remodeling skills aren't that bad either — aside from that, you've already located the right contractor to tackle this job.
But where can real estate investors get funding? A standard lending institution, say for example a bank, takes no less than 1 to 2 months to approve the mortgage and provide the capital. With the home owners wanting a fast closing, that does not seem like a good idea to you at all.
On top of this, banks have already been tightening their lending requirements as of late, which makes it challenging for a person to get a conventional home loan if their credit circumstances are not flawless or he does not possess a consistent salaried occupation. So does this leave you with no option, but to give up your dream to venture into flipping? Certainly not, given that you also have the Elmwood Park, New Jersey hard money loan alternative.
A hard money home loan in Elmwood Park can provide what's deemed essential to many real estate sales — a very fast closing of only a couple of weeks and sometimes less. Plus, the LTV value can range up to 70% of the place's valuation, as determined by a competent appraiser. With the interest rates starting off at about 10%, hard money real estate loans may seem, at first glance, to be higher priced when compared with conventional bank loans. But when you appreciate that these loans are not long-term home loans, the rate tends to be misleading. Short-term loans of a couple months to a few years are best understood in terms of cost of capital, much like any other financial outlay related to a project. Once you've turned the home and have made a successful gain, you can reclaim this expense from the property or home — the same as recuperating the money necessary for the brand-new kitchen appliances that you have put in.
Besides, hard money mortgages are easy qualifying, regardless if you posses less-than-perfect credit. As an alternative for focusing solely on the applicant's credit score or net income, Elmwood Park hard money lenders, who could be a private company or an individual, authorize a loan after assessing the home value, its salability, its location, and the odds of recovering their money in the event of foreclosure. The amount that a person can put down beforehand towards the home, his past real estate experience, and price range of equivalent properties in the same area are additional factors that go into analyzing an applicant's suitability for a hard money real estate loan.
So in case you have stumbled on an excellent real estate opportunity with a high chance of returns, you've also found yourself a hard money lender in Elmwood Park that's happy to provide funding for your fix and flip ventures. Enter your info into the form 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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