Hard Money Loans in Haddon Heights
Imagine you've run across this really great deal on a fix and flip property you found in a terrific location, and you happen to be either a seasoned real estate investor or a first-timer who hopes to try his hand at flipping. Professional home flippers, like the young married couple on Flip or Flop, HGTV's reality flipping program, are capable of bringing in a profit of $40-$50k on average. And sure, they are helped in a big way due to their professional experience, auction abilities and understanding of hard money loans. Nonetheless, your rehab and remodeling skills aren't that bad either — aside from that, you have already located an ideal general contractor to take on this job.
But where precisely can real estate investors find financing? Should you go after a traditional loan via a bank, you will have to wait somewhere around 1 to 2 months before the mortgage loan is authorized and your funding is ready. Since most sellers give preference to a fast closing, you might need to start searching for other funding alternatives.
What's more, if you have a sub-optimal credit score or don't have a routine income source, it is normally more difficult to be eligible for bank financing, with the more stringent loan guidelines banks have issued of late. So must you admit defeat and forego your desire to venture off into real estate? Certainly not, on the grounds that you could always use the Haddon Heights, New Jersey hard money loan approach to finance your home flipping project.
When you opt for a hard money home loan in Haddon Heights, you have access to what is possibly most important to real estate offers across the country — a very fast closing of approximately a couple weeks. In addition, the LTV value can go up to 70% of the property's valuation, as evaluated by a certified appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, appear to be costlier than bank financing. But the time frames of these loans are relatively shorter, which makes the interest rate less important. As it pertains to short-term loans of one or two years or even less, you should think about them much like you would other expenses for the project. When you have turned the home and have made a positive return, you'll be able to recoup this expense from the property — the same as recovering the money spent on the brand-new appliances for the kitchen that you installed.
Also, it isn't difficult to be eligible for a hard money mortgage, regardless if your credit situation is not that extraordinary. The applicant's credit score isn't the lone determining factor for Haddon Heights hard money lenders — they also consider the house, its market valuation, its location, and its capability to bring back their investment if things do not go as intended. Other criteria that affect an applicant's eligibility for a hard money real estate loan can include how much he can put towards a down payment, his previous experience being a real estate investor, and price of comparative, recently sold residences in the vicinity.
So should you run into a very good and worthwhile flipping opportunity, relax knowing you will have a hard money lender in Haddon Heights, able to loan you the cash you will need. Submit the form on this page or give us a call and let's discuss the property or properties you have in mind.
A loan specialist will be in touch shortly