Hard Money Loans in Haverstraw
Imagine you've run into this excellent deal for a fix and flip property located in an ideal location, and you are either a skilled real estate investor or a first-timer who wants to try his hand at flipping. Professional house flippers, similar to the young married couple on Flip or Flop, HGTV's reality flipping show, are capable of generating a profit of forty to fifty grand for the majority of homes. Of course, you also realize that their successes are credited to the fact that they are professionals, are proficient in hard money loans, they know market trends really well and in addition, they are good at working an auction for getting a good price. That said, you've also been cultivating your rehab and renovation skills, have a very good licensed contractor lined up and are confident that you can do a stellar job for this home.
But money is often a separate issue entirely. When you opt for a traditional bank loan, you will wind up waiting somewhere around 4-8 weeks before the mortgage is authorized and the funding is available. So if you happen to be looking for a fast closing, you have to understand that this will cost you a couple weeks, making you miss out on the home.
What's more, should you have a less-than-perfect credit score or do not receive a consistent source of income, it may be harder to be eligible for bank financing, with the more stringent loan requirements banks have introduced lately. So does that mean you are without an option, but to abandon your dream of venturing into home renovating? Never, on the grounds that you could always use the Haverstraw, New York hard money loan approach to pay for your rehab project.
If you decide to obtain a hard money home loan in Haverstraw, you will get what is possibly most important to real estate purchases across the country — a quick closing of roughly 14 days. And additionally, financing is made up to 70% loan-to-value of the as-is home's valuation, as determined by a professional appraiser. At first glance, hard money real estate loans, with starting interest rates of 10%, appear to be more costly than bank lending options. But once you consider these are not long-term loans, the rate of interest tends to be misleading. Short-term loans of several months to a few years are best looked at in terms of cost of capital, very much like every other expenditure related to a project. And when you've sold the property, recuperating this expense is the exact same as recuperating the expense for all the kitchen and bath upgrades you performed.
Besides, hard money mortgages are easy qualifying, regardless if you have got poor credit. Instead of focusing exclusively on the person's credit score or source of income, Haverstraw hard money lenders, who can be a privately owned company or an individual person, approve a loan after assessing the property value, its salability, its location, and the probability of getting back their money should they have to foreclose the loan. Adding to this, if the borrower can demonstrate prior experience in equivalent real estate projects, can place down cash for the down payment, and the cost of similar houses in the neighborhood works to his benefit, he stands a good chance of being eligible for a hard money real estate loan.
Locating a hard money lender in Haverstraw to help with expenses for your renovation project is not difficult, assuming that the opportunity in front of you is promising and has a strong potential for returns. Submit the form on this page or give us a call and let's talk about your project.
A loan specialist will be in touch shortly