Hard Money Loans in Erie
Suppose you've encountered this truly good deal for a fix and flip property located in a great location, and you're either a skilled real estate investor or a newbie who hopes to try his hand at flipping. You may have heard that professional home flippers, like the husband and wife on HGTV's Flip or Flop, turn a remarkable average return of around $40,000 – $50,000. And indeed, they are aided in a big way via their professional experience, auction abilities and familiarity with hard money loans. However, you're convinced that your first class rehab and remodeling abilities will assist you to do a superb job for this project — furthermore, you already have arranged to have one of the best building contractors in the business to take care of this project.
But where can real estate investors find capital? Should you go after a normal loan via a bank, you will need to wait somewhere around 30-60 days until eventually the loan is authorized and your money is accessible. So if you're wishing for a fast closing, it's important for you to recognize that this may cost you a couple of weeks, causing you to lose out on the opportunity.
With banks establishing tougher loan guidelines in recent years, it is now tougher for a self-employed individual to obtain a mortgage loan, particularly if his credit rating is not optimal. So must you stop trying and forego your dream to venture off into the real estate market? Not at all, particularly while Erie hard money loans enable you to accomplish many amazing things in real estate.
If you opt for a hard money home loan in Erie, you'll get what's probably most essential to real estate offers across the country — a fast closing of around fourteen days. In addition, the LTV value can reach up to 70% of the property value, as evaluated by a certified appraiser. Some individuals believe hard money real estate loans to be higher in price than standard financing, considering interest rates for such loans normally start out at 10%. But in reality, the lending rate isn't as relevant for these loans, because they aren't long-term loans. As it pertains to short-term loans of a handful of years or even less, you should consider them much like you would other expenses for your project. And as soon as you've turned the home, recovering this expense is comparable to recouping the expense for the bathroom improvements you performed.
Furthermore, even a person with low credit can still qualify for a hard money mortgage. Erie hard money lenders don't approve a loan strictly on the basis of the borrower's credit score — instead they will analyze the home, its location and value, and the property's capability to pay back the loan without the help of the person. On top of this, if the person have proven experience in similar real estate endeavors, can put down money for the down payment, and the price of comparable properties in the area works in his favor, he will have an excellent shot of being approved for a hard money real estate loan.
Finding a hard money lender in Erie to fund your renovation project is not difficult, as long as the opportunity in front of you is promising and offers a strong potential for returns. Complete the form on this page or give us a call and let's talk about your project.
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