Hard Money Loans in Harrisburg
Imagine you've encountered this excellent deal on a fix and flip property you found in an ideal neighborhood, and you are either a skilled real estate investor or a first-timer who wants to try his hand at flipping. You've probably heard that veteran home flippers, similar to the couple on HGTV's Flip or Flop, enjoy a remarkable average profit margin of around $40,000 – $50,000. It goes without saying their past experiences rehabbing, knowledge of hard money loans, expertise in their housing market, and auction talents have played a significant role in their successes. On the other hand, you are assured that your impressive rehab and remodeling knowledge will enable you to do a quality job on this home — furthermore, you have already arranged to have one of the most recommended general contractors in the business to handle the job.
But how can real estate investors obtain funding? For those who apply for a conventional loan via a bank, you will wind up waiting around roughly 4-8 weeks until the money is authorized and your funds are readily available. Due to the fact the home owners are seeking a fast closing, that does not seem like a good option to you in the slightest.
With banks establishing more challenging loan criteria in the past several years, it is now more challenging for a self-employed individual to get a mortgage loan, especially if his credit circumstances are not flawless. So does that leave you with no other option, but to abandon your aspiration to venture into home flipping? Definitely not, because you also have the Harrisburg hard money loan alternative.
When you get a hard money home loan in Harrisburg, you'll get what is possibly most vital to real estate purchases throughout the country — a fast closing of about two weeks. Furthermore, hard money lenders are capable of doing lending up to 70% LTV of the property's valuation, as assessed by a certified third-party evaluator. On the surface, hard money real estate loans, with starting lending rates of 10%, seem to be costlier than bank loans. But when you appreciate that these loans are not long-term home loans, the interest rate may be misleading. The cost of such short-term loans ought to be evaluated much like any other financial outlay that you will have to meet for the project. Right after you renovate and unload the house, recouping this expense is no different than recuperating the one for home appliances you put in the place.
Moreover, even an individual with low credit will be able to qualify for a hard money mortgage. The applicant's credit score is not the primary deciding factor for Harrisburg hard money lenders — in addition, they analyze the house, its market value, its location, and its potential to bring back their investment if everything does not go as planned. On top of this, if the person can demonstrate prior experience in comparable real estate ventures, can place down money towards the down payment, and the cost of equivalent properties in the vicinity works to his benefit, he will have a really good likelihood of qualifying to get a hard money real estate loan.
So any time you come across an outstanding and profitable investment opportunity, feel comfortable knowing you will have a hard money lender in Harrisburg, in a position to lend you the cash you will need. Complete the contact form on this page or call us and let's discuss your property.
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