Hard Money Loans in Glenolden
You discovered this outstanding opportunity to fix and flip this wonderful old home in a good part of town and it seems a lot like the deal you have been expecting for a long time. You've heard that professional home flippers, much like the husband and wife on HGTV's Flip or Flop, have a remarkable average profit close to $40,000 – $50,000. And sure, they are helped in a major way as a result of their professional knowledge, auction expertise and knowledge of hard money loans. With that being said, you've likewise been developing your rehab and remodeling skills, have a building contractor lined up and are positive that you will be able to do a bang up job for this house.
But how exactly can real estate investors get capital? Should you go after a traditional bank loan, you will wind up waiting approximately one to two months until eventually the mortgage loan is approved and the funding is available. Thus if you are wishing for a fast closing, it's important for you to understand that this could cost you a few weeks, causing you to lose out on the sale.
With banks adding harder loan criteria in the recent past, it's become more difficult for a self-employed person to find a home loan, particularly if his credit rating is not optimal. So should you give up and abandon your dream to embark into the real estate market? Certainly not, because you could always go the Glenolden hard money loan route to finance your flipping project.
A hard money home loan in Glenolden provides what's considered essential to many real estate transactions — a quick closing of only a few weeks and more often than not less. Plus, the LTV value can reach up to 70% of the property value, as estimated by a competent appraiser. With the interest rates starting at about 10%, hard money real estate loans may seem, initially, to be more costly as compared with traditional bank lending products. But the lengths of these loans tend to be quite short, making the interest rate much less significant. When it comes to short-term loans of one or two years or less, you should think about them similar to any sort of other expense for your project. And as soon as you have finally flipped the house, recouping this expense is comparable to recuperating the expense for the kitchen and bath improvements you did.
What's more, it isn't difficult to qualify for a hard money mortgage, even when your credit situation is not that extraordinary. The person's credit score isn't the exclusive deciding factor for Glenolden hard money lenders — they also analyze the home, what is it valued at, its location, and its capability to bring back their financial commitment if things should not go as intended. On top of this, if the person can demonstrate prior experience in comparable real estate endeavors, can put down cash for a down payment, and the price of equivalent homes in the vicinity works in his favor, he has a good likelihood of being approved to obtain a hard money real estate loan.
So should you run into a really good and worthwhile investment opportunity, feel comfortable knowing you will have a hard money lender in Glenolden, willing to lend you the money you need. Fill out the contact form or give us a call to discuss your project.
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