Hard Money Loans in Glen Rock
Suppose that you've run into this truly good bargain for a fix and flip property in an ideal neighborhood, and you happen to be either a skilled real estate investor or a newbie who is looking to try his hand at flipping. Everyone knows that capable professional flippers, like Tarek and Christina El Moussa from HGTV's reality flipping show, Fix or Flop, can readily turn an average profit margin of $40,000 to $50,000 when they rehab properties. Naturally, you also know that their successes are due to the simple fact that they are professionals, are proficient in hard money loans, they understand the marketplace really well and in addition, they know how to work a public auction to buy their homes at a good deal. Having said that, you have likewise been brushing up your rehab and remodeling skills, have a very good contractor lined up and are positive that you can do a bang up job for this property.
But where do real estate investors obtain financing? A conventional lender, for instance a bank, takes at the very least one to two months to authorize the financing and release the monies. Considering that the sellers are looking for a fast closing, that doesn't appear to be a wise idea to you whatsoever.
What's more, if you have an unfavorable credit situation or do not have a consistent income, it usually is more challenging for you to be eligible for a bank loan, with the stricter loan guidelines banks have put in place recently. So should you admit defeat and forego your dream to embark into real estate? Under no circumstances, particularly when Glen Rock hard money loans enable you to realize many amazing things in the real estate market.
A hard money home loan in Glen Rock boasts what's perhaps most sought after by real estate investors — a fast closing in as little as 2 weeks. In addition, the LTV value can reach up to 70% of the property value, as determined by a credentialed appraiser. With the lending rates starting near 10%, hard money real estate loans might seem, at first, to be higher priced as compared with conventional bank loans. But when you appreciate that these are not long-term mortgage loans, the rate can be misleading. When it comes to short-term loans of a handful of years or less, you should consider them identical to any other expense for the project. And once you've sold the property or home, recovering this expense is comparable to recouping the expense for all the kitchen and bath updates you performed.
Furthermore, even someone with bad credit can easily be eligible for a hard money mortgage. Glen Rock hard money lenders do not approve a loan solely judging by the customer's credit score — instead they additionally assess the home, where it is located and what it is worth, and the home's capability to pay back the loan without the help of the applicant. Adding to this, if the borrower can demonstrate prior experience in similar real estate projects, can place down cash for a down payment, and the cost of comparative properties in the neighborhood works to his benefit, he will have a really good chance of being approved for a hard money real estate loan.
Searching for a hard money lender in Glen Rock to help with expenses for your renovation project is not difficult, as long as the opportunity in front of you is promising and has a good prospect for returns. Fill out the form or get in touch with us via phone and let's discuss your property or properties.
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