Hard Money Loans in Glen Ridge
A fantastic bargain on a fix and flip opportunity in a nice subdivision shows up out of the blue — sounds too good to be true. You've probably heard that professional home flippers, similar to the married couple on HGTV's Flip or Flop, have an impressive average profit of around forty to fifty thousand dollars. And without a doubt, they are helped in a major way by their professional knowledge, auction expertise and knowledge of hard money loans. That said, you've recently been cultivating your rehab and renovation knowledge, have got a licensed contractor ready for the project and are positive that you can do a great job for this home.
But where can you obtain the needed financing for home flipping? Should you approach a customary lender, such as a bank for financing, it can take, at the very least, thirty to sixty days for your approval to be completed and your money to be furnished. With all the home owners wanting a fast closing, that doesn't seem like a good idea to you at all.
With banks bringing in tougher loan guidelines in the past few years, it is now tougher for a self-employed person to find a mortgage loan, especially if his credit rating is not perfect. So will a shortage of financing prevent you from pursuing your dream? Most certainly not, because you always have the Glen Ridge, New Jersey hard money loan alternative.
A hard money home loan in Glen Ridge gives you what's regarded as essential to many real estate sales — a very fast closing of just a few weeks and more often than not less. Furthermore, hard money lenders will often consent to funding up to 70% LTV of the property or home value, as estimated by a certified third-party appraiser. Some people regard hard money real estate loans to be costlier than customary loans, because the interest rates for these loans ordinarily start out at 10%. But the term lengths for these loans tend to be quite short, which makes the interest rate less significant. As it pertains to short-term loans of 1 or 2 years or even less, you should think about them similar to any other expenditure for your project. Once you've resold the property or home and have made a good financial gain, you can recover this expense from the house — the same as recovering the cost of brand-new appliances for the kitchen that you've installed.
Furthermore, even individuals with poor credit will be able to qualify for a hard money mortgage. Glen Ridge hard money lenders don't take on a loan solely judging by the borrower's credit score — rather they additionally examine the home, its valuation and location, and the property's capability to pay back the financing independent of the borrower. Adding to that, if the applicant have proven experience in similar real estate projects, can put down money towards the down payment, and the cost of equivalent homes in the area works in his favor, he has got a really good chance of qualifying to get a hard money real estate loan.
So in case you have found an excellent fixer-upper with a high chance of returns, you have also stumbled upon a hard money lender in Glen Ridge that is prepared to provide financing for your fix and flip project. Fill out the contact form on this page or call us and let's talk about the property or properties you have in mind.
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