Hard Money Loans in Felton
A fantastic deal on a fix and flip opportunity in an excellent subdivision all of a sudden shows up — sounds so good that it's hard to believe. Expert property flippers, such as the young couple on Flip or Flop, HGTV's reality flipping series, are capable of bringing in a gain of forty to fifty grand on average. And yes, they are helped in a big way via their professional knowledge, auction skills and familiarity with hard money loans. On the other hand, you are assured that your impressive rehab and remodeling skills will assist you to do a superb job on the property — furthermore, you already have lined up one of the most suggested building contractors in town to work on the project.
But funding is often a separate problem altogether. A typical lender, like for example a bank, takes a minimum of one to two months to approve the financing and hand over the cash. So if you are wishing for a fast closing, it's important to realize that this may cost you a couple weeks, making you miss out on the home.
Moreover, should you have an unfavorable credit situation or don't receive a consistent income source, it may be harder for you to qualify for a bank loan, considering the tighter loan guidelines banks have issued in recent times. So does that leave you with no option, but to give up your aspiration of getting into rehabbing? By no means, particularly when Felton hard money loans enable you to achieve great things in real estate.
A hard money home loan in Felton promises what is probably most sought after by real estate investors — a very fast closing time of as few as fourteen days. Furthermore, hard money lenders are able to do funding up to 70% LTV of the property or home's valuation, as estimated by a credentialed third-party evaluation. On the surface, hard money real estate loans, with starting lending rates of 10%, could be seen as higher in price than bank loans. But the lengths of these loans tend to be much shorter, which means the interest rate is much less important. The cost of such short-term loans should be considered on par with any other cost that you would have to meet pertaining to the project. And when you have flipped the home, recouping this expense is identical to recouping the expense for all the bathroom upgrades you performed.
Furthermore, even an individual with poor credit can still qualify for a hard money mortgage. Felton hard money lenders don't approve a loan solely judging by the person's credit score — rather they will evaluate the property or home, where it is located and how much it is worth, and the home's capacity to pay back the financing independent of the person. Additional criteria that impact a customer's approval for a hard money real estate loan include how much he is in a position to put into a down payment, his previous experience as a real estate investor, and selling price of comparative, just recently sold properties in the vicinity.
If you happen to have found a really great real estate opportunity with a significant probability of returns, you have also stumbled upon a hard money lender in Felton that's willing to fund your fix and flip ventures. Complete the contact form or call us and let's talk about your project.
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