Hard Money Loans in Fox Chapel
Suppose you've run across this truly good deal on a fix and flip property you found in an ideal neighborhood, and you're either a seasoned real estate investor or a first-timer who really wants to try out flipping houses. Professional home flippers, such as the young married couple on Flip or Flop, HGTV's reality flipping program, are able to haul in a gain of $40-$50k on a consistent basis. And yes, they are helped in a major way due to their professional know-how, auction expertise and familiarity with hard money loans. Nonetheless, your rehab and renovation knowledge isn't bad either — in any case, you've already identified an ideal building contractor to start this home.
But how do you obtain the necessary capital for home flipping? A typical lender, say for example a bank, takes no less than one to two months to approve the loan and release the monies. Since the majority of sellers would rather have a fast closing, you may want to begin seeking out some other funding options.
Moreover, if you have an unfavorable credit score or do not have a consistent source of income, it usually is harder for you to qualify for a bank loan, considering the tougher loan requirements banks have put in place lately. So does that leave you with no option, but to drop your dream of venturing into the fix and flip business? Most certainly not, seeing as you also have the Fox Chapel hard money loan alternative.
Should you obtain a hard money home loan in Fox Chapel, you will get what is possibly most important to real estate transactions throughout the country — a quick closing of approximately fourteen days. And additionally, financing can be made up to 70% loan-to-value of the "as is" house value, as established by a qualified appraiser. With the loan rates starting out at about 10%, hard money real estate loans may look, initially, to be more pricey compared to conventional bank financing. But once you understand these loans are not long-term mortgage loans, the rate of interest may be misleading. Short-term loans of a couple months to a few years are best looked at as cost of capital, similar to all other costs involved with a project. And when you've turned the property or home, recovering this expense is identical to recouping the expense for the kitchen and bath updates you did.
Besides, hard money mortgages are not hard to qualify for, whether or not you have a bad credit rating. The customer's credit score will not be the single deciding factor for Fox Chapel hard money lenders — in addition, they examine the property, how much it is worth, its location, and its ability to earn back their investment if things do not go as planned. How much an individual can put down beforehand for the house, his real estate experience, and price range of comparable properties in the area are other factors that go into establishing an individual's suitability for a hard money real estate loan.
So should you run into a very good and profitable investment opportunity, feel comfortable knowing you'll have a hard money lender in Fox Chapel, ready to lend you the money you need. Submit the contact form or give us a call to talk about your property or properties.
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