Hard Money Loans in Hackettstown
There's this amazing opportunity to renovate and flip this wonderful outdated home in a fantastic area and it seems like the deal you have been looking forward to for quite some time. You've heard that professional home flippers, similar to the couple on HGTV's Flip or Flop, have a remarkable average return near forty to fifty thousand dollars. Without question, their rehabbing experience, knowledge of hard money loans, familiarity with the housing market, and auction talents have had a significant part in their success. Having said that, you've also been cultivating your rehab and renovation knowledge, have a very good licensed contractor lined up and are positive that you can do an impressive job on this home.
But where can you get the needed capital for flipping? A standard lender, like for example a bank, takes a minimum of one to two months to authorize the financing and deliver the funds. Considering that all the home owners want a fast closing, that doesn't appear to be a good option to you whatsoever.
With banks establishing harder loan criteria in the past few years, it's become more challenging for a self-employed person to obtain a home loan, especially if his credit rating is not flawless. So will a shortage of financing stop you from pursuing your ambitions? Not at all, especially when Hackettstown, New Jersey hard money loans can help you accomplish many amazing things in real estate.
A hard money home loan in Hackettstown can provide what's viewed as essential to most real estate deals — a quick closing of only a couple of weeks and oftentimes even less. And additionally, loans can be done for up to 70% loan-to-value of the as-is valuation, as determined by a licensed appraiser. With the loan rates starting near 10%, hard money real estate loans may appear, at first glance, to be more pricey compared to conventional bank loans. But usually, the rate of interest is not as relevant for these loans, because they will never be long-term loans. When it comes to short-term loans of several years or even less, you should look at them similar to any other expense for your project. Once you have resold the house and have made a good return, you're able to recover this expense from the property or home — the same as recouping the cost of brand-new appliances for the kitchen that you have installed.
What's more, it's easy to qualify for a hard money mortgage, even when your credit score is not that extraordinary. Instead of focusing strictly on the applicant's credit score or source of income, Hackettstown hard money lenders, who could be a privately owned company or an individual, say yes to a loan after analyzing the property value, its marketability, its location, and the odds of recuperating their money if they have to foreclose the loan. Several other factors that have an impact on an individual's approval for a hard money real estate loan include how much money he is in a position to put towards a down payment, his previous experience being a real estate investor, and selling price of similar, fairly recently sold residences in the neighborhood.
So any time you come across a really good and lucrative investment opportunity, be assured you will have a hard money lender in Hackettstown, in a position to lend you the funds you'll need. Complete the contact form or give us a call and let's talk about the property or properties you have in mind.
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