Hard Money Loans in Frankford
Suppose you've run across this really great deal on a fix and flip property in a great location, and you are either a seasoned real estate investor or a first-timer who hopes to try his hand at flipping. You've probably heard that veteran house flippers, much like the couple on HGTV's Flip or Flop, have a remarkable average return near $40,000 – $50,000. Without question, their rehabbing experience, understanding of hard money loans, familiarity with the market, and auction talents have been large factors to their successes. Still, your rehab and renovation skills aren't that bad either — in any case, you've already located an ideal general contractor to handle the job.
But funding is often a different question entirely. When you apply for an ordinary bank loan, you will need to wait around roughly one to two months before the financing is authorized and the funding is accessible. So if you will be wishing for a fast closing, it is important you recognize that this may set you back by a few weeks, making you lose out on the house.
With banks bringing in harder loan requirements in the past few years, it is more difficult for a self-employed individual to obtain a mortgage loan, especially when his credit rating is not flawless. So does this mean you have no option, but to give up your aspiration of venturing into the fix and flip business? By no means, because you can always use the Frankford hard money loan approach to pay for your home renovating project.
If you get a hard money home loan in Frankford, you will get what is possibly most important to real estate offers across the country — a very fast closing of about fourteen days. Additionally, loan amounts can be made up to 70% loan-to-value of the "as is" house value, as calculated by a licensed appraiser. With rates starting off around 10%, hard money real estate loans may seem, at first, to be more costly in comparison with conventional bank loans. But once you consider these are not long-term loans, the rate may be misleading. The cost of such short-term loans should be viewed on par with any other financial outlay that you might encounter in the course of the project. After you remodel and resell the property, recouping this expense is no different than recovering the cost of the stainless steel appliances you installed in the property.
Besides, hard money mortgages are not hard to qualify for, whether or not you posses a weak credit score. Frankford hard money lenders do not approve a loan solely on the basis of the person's credit score — instead they also analyze the home, its location and value, and the home's capability to pay back the financing independent of the person. The amount that a person can put down in advance for the property, how much practical experience he has in real estate investments, and price range of comparative homes in the same neighborhood are additional details that go into establishing a borrower's qualification for a hard money real estate loan.
So any time you run into an outstanding and profitable flipping opportunity, rest assured you will have a hard money lender in Frankford, willing to loan you the funds you may need. Fill out the contact form on this page or get in touch with us via phone and let's discuss your property.
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