Hard Money Loans in Folcroft
Suppose that you've come across this excellent deal on a fix and flip property in a terrific neighborhood, and you're either a skilled real estate investor or a first-timer who is looking to try out flipping homes. Expert property flippers, such as the young couple on Flip or Flop, HGTV's reality flipping show, are capable of generating a gain of $40-$50k on a regular basis. Without question, their rehabbing experience, knowledge of hard money loans, expertise in their housing market, and auction talents have had a significant part in their results. However, you are convinced that your impressive rehab and renovation knowledge will help you do a quality job for this home — furthermore, you already have lined up one of the best contractors in the business to take on this project.
But how exactly can real estate investors find money? A conventional lending institution, for instance a bank, takes at the very least 1 to 2 months to authorize the mortgage and provide the capital. With the sellers wanting a fast closing, that does not appear like a great idea to you in the slightest.
Furthermore, if you have an unfavorable credit situation or do not have a conventional source of income, it is normally tougher for you to be eligible for bank financing, seeing the tougher loan requirements banks have introduced as of late. So do you have to admit defeat and abandon your ambition to venture into the real estate market? Most certainly not, because you also have the Folcroft hard money loan option.
A hard money home loan in Folcroft provides you with what is probably most important to real estate investors — a very fast closing time period of as few as a few weeks. Additionally, financing is made up to 70% loan-to-value of the "as is" property value, as determined by a qualified appraiser. A number of people regard hard money real estate loans to be more costly than standard loans, since the interest rates for such loans typically start out at 10%. But if you understand these loans are not long-term mortgage loans, the interest rate may be misleading. Short-term loans of a couple of months to a handful of years are best looked at as cost of capital, similar to any other expense associated with a project. After you remodel and unload the home, recuperating this expense is no different than recovering the cost of the home appliances you put in the home.
Besides, hard money mortgages are easy qualifying, even in the event you posses poor credit. Folcroft hard money lenders do not take on a loan solely based on the customer's credit score — rather they will examine the property, its location and value, and the property's ability to pay back the financing independent of the applicant. The amount that a borrower can put down beforehand towards the house, how much experience he has in real estate investments, and selling price of comparable homes in the same vicinity are various other factors that go into establishing an individual's suitability for a hard money real estate loan.
Searching for a hard money lender in Folcroft to fund your renovation project is not difficult, as long as the opportunity that lies ahead of you is promising and has the right prospect for returns. Complete the contact form or get in touch with us via phone and let's talk about your project.
A loan specialist will be in touch shortly