Hard Money Loans in Fort Lee
Suppose that you've come across this truly good bargain for a fix and flip property in a great location, and you are either a skilled real estate investor or a first-timer who wants to try out flipping houses. You've heard that professional property flippers, such as the married couple on HGTV's Flip or Flop, have a remarkable average profit near $40,000 – $50,000. Naturally, you also realize that their success are due to the simple fact that they're experts, are well versed in hard money loans, they understand market trends really well and they also are good at working a public auction for getting a reasonable price. Nevertheless, you are assured that your superb rehab and remodeling knowledge can help you do an outstanding job on this property — what's more, you've already lined up one of the finest general contractors in the area to work on this job.
But funding is usually a separate problem altogether. For those who opt for a regular loan via a bank, you will end up waiting approximately 4-8 weeks until eventually the money is authorized and the money is ready to go. Given that home owners prefer a fast closing, it may be best to begin looking for some other funding alternatives.
On top of this, banks have already been tightening up their lending requirements in recent times, making it tough for a person to receive an ordinary loan if their credit rating is not perfect or he doesn't have a consistent salaried job. So does that leave you with no other option, but to give up your ambition to venture into home flipping? Never, due to the fact you could always use the Fort Lee hard money loan approach to fund your rehab project.
A hard money home loan in Fort Lee promises what's possibly most desired by real estate investors — a quick closing time of as few as fourteen days. Plus, the LTV value can go up to 70% of the home value, as evaluated by a competent appraiser. With the interest rates starting off near 10%, hard money real estate loans may appear, at first glance, to be more costly as compared with conventional bank loans. But in reality, the lending rate is not as relevant for these loans, given that they will never be long-term financing. As it pertains to short-term loans of one or two years or less, you should consider them just like you would other expenditures for your project. Right after you remodel and resell the home, recouping this expense is just like recovering the cost of the stainless steel appliances you placed into the home.
Also, it isn't difficult to qualify for a hard money mortgage, even if your credit rating is not that extraordinary. Rather than focusing strictly on the person's credit score or net income, Fort Lee hard money lenders, who may be a privately owned company or an individual, approve a loan after evaluating the home value, ease of marketability, where it is located, and the possibility of recouping their money in case of foreclosure. Several other criteria that influence an individual's eligibility for a hard money real estate loan include what amount of money he is able to put towards a down payment, his previous experience being a real estate investor, and price of similar, recently sold properties in the area.
So in case you have stumbled upon an excellent home to flip with a high chance of returns, you have also found yourself a hard money lender in Fort Lee that's happy to fund your fix and flip ventures. Enter your info into the form or give us a call and let's talk about your project.
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