Hard Money Loans in Floral Park
Suppose you've stumbled upon this excellent deal for a fix and flip property located in a great location, and you happen to be either an experienced real estate investor or a newbie who wants to try out flipping houses. Professional property flippers, much like the young married couple on Flip or Flop, HGTV's reality flipping program, are capable of hauling in a profit of $40-$50k on a consistent basis. Of course, you also understand that their results can be attributed to the simple fact that they're professionals, are well versed in hard money loans, they know market trends quite well and they also know how to work a public auction to buy their homes at an appropriate deal. Nonetheless, your rehab and renovation skills aren't that bad either — in any case, you have already identified a good general contractor to handle the home.
But capital is usually a different problem entirely. A typical lender, for instance a bank, takes at the very least 1-2 months to authorize the loan and provide the capital. With the sellers looking for a fast closing, that does not appear to be a wise idea to you at all.
With banks bringing in harder loan requirements in recent times, it has become more difficult for a self-employed individual to find a mortgage loan, especially when his credit rating is not optimal. So does that leave you with no option, but to give up your dream to venture into rehabbing? Never, because you could always use the Floral Park, New York hard money loan approach to finance your rehab project.
A hard money home loan in Floral Park gives you what's possibly most sought after by real estate investors — a fast closing time of as few as 2 weeks. Also, hard money lenders can approve loans up to 70% LTV of the property or home value, as established by a licensed third-party evaluation. On the surface, hard money real estate loans, with starting lending rates of 10%, appear to be higher in price than bank loans. But once you consider these loans are not long-term home loans, the rate of interest can be misleading. Short-term loans of a couple of months to a handful of years are best thought of in terms of cost of capital, similar to all other expenses in connection with a project. And once you've finally flipped the property, recovering this expense is the exact same as recuperating the expense for the kitchen and bath improvements you did.
In addition, even a person with low credit can easily qualify for a hard money mortgage. Floral Park hard money lenders don't approve a loan solely judging by the applicant's credit score — rather they will evaluate the property or home, its value and location, and the home's capacity to pay back the loan independent of the applicant. The total amount that an applicant can put down beforehand for the house, his past real estate experience, and selling price of equivalent properties in the same vicinity are various other details that go into ascertaining an applicant's qualification for a hard money real estate loan.
If you happen to have stumbled upon a wonderful real estate opportunity with a high chance of returns, you have also found yourself a hard money lender in Floral Park who's happy to provide financing for your rehab venture. Complete the contact form on this page or give us a call and let's talk about your property.
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