Hard Money Loans in Hempstead
You discovered this outstanding opportunity to renovate and flip this nice out of date property in a fantastic location and it seems like the one you've been eagerly waiting on for quite some time. Professional residential home flippers, such as the young couple on Flip or Flop, HGTV's reality flipping series, are capable of earning a profit of forty to fifty grand on average. No need to explain that their rehabbing experience, knowledge of hard money loans, familiarity with the market, and auction talents have been major factors to their successes. With that being said, you have recently been brushing up your rehab and remodeling knowledge, have a very good general contractor ready for the project and are confident that you're capable of doing a great job for this home.
But how do you find the necessary financing for home flipping? A conventional lender, like for example a bank, takes at least 1 to 2 months to approve the financing and provide the funds. So if you're expecting a fast closing, you must understand or know that this could cost you a few weeks, causing you to lose out on the opportunity.
As well as this, if you have an unfavorable credit rating or don't have a consistent source of income, it is usually tougher to be eligible for a bank financing, considering the stricter loan guidelines banks have issued recently. So will a shortage of funds keep you from pursuing your dream? Certainly not, given that you always have the Hempstead hard money loan alternative.
A hard money home loan in Hempstead provides what's possibly most crucial to real estate investors — a fast closing in as little as two weeks. Aside from that, financing can be made up to 70% loan-to-value of the "as is" home value, as determined by a qualified appraiser. With the loan rates starting near 10%, hard money real estate loans might appear, initially, to be higher in price compared to conventional bank lending products. But when you consider these are not long-term home loans, the rate tends to be misleading. When it comes to short-term loans of a handful of years or less, you should look at them just like you would other expenses for your project. Once you have sold the house and have made a positive profit, you can reclaim this expense from the property — similar to recovering the money necessary for the brand-new appliances for the kitchen that you installed.
What's more, it is simple to obtain a hard money mortgage, even when your credit score is not that extraordinary. Instead of focusing exclusively on the applicant's credit score or income, Hempstead hard money lenders, who may be a private company or an individual, authorize a loan after evaluating the home value, its salability, where it is located, and the possibility of getting back their money in case of foreclosure. How much of their own money a borrower can put down beforehand towards the property or home, his past real estate experience, and price range of equivalent homes in the neighborhood are additional factors that go into ascertaining a person's qualification for a hard money real estate loan.
So if you have found a really great real estate opportunity with a high potential for returns, you've also discovered a hard money lender in Hempstead that's ready to provide financing for your flipping venture. Fill out the contact form on this page or call us to discuss the property you have in mind.
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