Hard Money Loans in Hempstead
Suppose that you've stumbled upon this really great bargain on a fix and flip property in a great neighborhood, and you happen to be either a seasoned real estate investor or a newbie who wants to try out flipping homes. Everybody knows that expert professional flippers, like Tarek and Christina El Moussa who do HGTV's reality flipping series, Fix or Flop, are able to earn a typical profit margin of $40,000 to $50,000 on their flips. It's fair to say their past experiences rehabbing, knowledge of hard money loans, familiarity with the market, and auction talents have played an important part in their results. With that being said, you've recently been developing your rehab and renovation knowledge, have a contractor ready to go and are confident that you're capable of doing a bang up job on this house.
But how can real estate investors get funding? If you apply for a normal loan from the bank, you will have to wait around roughly one to two months before the mortgage loan is approved and your money is readily available. So if you will be wishing for a fast closing, it is important you realize that this could cost you a couple of weeks, causing you to lose out on the opportunity.
Furthermore, for those who have a less-than-perfect credit situation or don't receive a consistent income source, it usually is harder to be eligible for a bank financing, seeing the stricter loan criteria banks have issued in recent times. So does that mean you have no option, but to abandon your ambition of venturing into home flipping? By no means, particularly when Hempstead hard money loans can help you realize many amazing things in real estate.
A hard money home loan in Hempstead boasts what is possibly most crucial to real estate investors — a very fast closing time period of as few as two weeks. Further, loans can be made up to 70% loan-to-value of the "as is" property value, as established by a professional appraiser. With the interest rates starting off near 10%, hard money real estate loans may appear, at first glance, to be more pricey as compared with conventional bank lending products. But once you understand these loans are not long-term loans, the interest rate may be misleading. The cost of such short-term loans ought to be looked at on par with any other financial outlay that you would need to meet pertaining to the project. Right after you renovate and resell the house, recuperating this expense is just like recovering the expense for home appliances you installed in the house.
Apart from this, hard money mortgages are not difficult to qualify for, regardless if you posses less-than-perfect credit. Rather than focusing strictly on the applicant's credit score or net income, Hempstead hard money lenders, who can be a private company or an individual person, authorize a loan after analyzing the property value, its salability, its location, and the possibility of getting back their capital should they have to foreclose the loan. Other variables that impact a borrower's eligibility for a hard money real estate loan can include what amount of money he can put towards a down payment, his former experience being a real estate investor, and price of similar, recently sold residences in the vicinity.
So if you have stumbled upon a really great real estate opportunity with a significant potential for returns, you have also found yourself a hard money lender in Hempstead that's willing to provide financing for your fix and flip ventures. Submit the contact form on this page or call us to discuss the project you have in mind.
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