Hard Money Loans in Hermitage
Suppose you've run into this truly good deal for a fix and flip property located in a terrific location, and you're either a seasoned real estate investor or a newbie who hopes to try his hand at flipping. Expert residential home flippers, such as the young couple on Flip or Flop, HGTV's reality flipping series, are capable of generating a gain of forty to fifty grand for most homes. It goes without saying their rehabbing experience, knowledge of hard money loans, expertise in their housing market, and auction talents have played an important role in their successes. Still, your rehab and renovation skills aren't that bad either — besides, you've already found an ideal building contractor to handle this job.
But money is often a separate question entirely. A standard lending institution, for instance a bank, takes a minimum of 1 to 2 months to authorize the mortgage and provide the monies. So if you're expecting a fast closing, it is important to understand or know that this may set you back by a few weeks, causing you to lose out on the sale.
Furthermore, in case you have a sub-optimal credit situation or don't have a regular source of income, it is usually tougher for you to be eligible for a bank financing, considering the more stringent loan criteria banks have put in place of late. So should you stop trying and abandon your aspiration to get into real estate? By no means, especially when Hermitage hard money loans enable you to achieve great things in the real estate world.
A hard money home loan in Hermitage boasts what's probably most important to real estate investors — a fast closing time period of as few as 14 days. Also, hard money lenders are able to do lending up to 70% LTV of the property value, as estimated by a qualified third-party appraiser. With rates starting out around 10%, hard money real estate loans might appear, at first, to be more costly as compared with traditional bank financing. But the lengths of these loans are quite short, making the rate much less significant. As it pertains to short-term loans of one or two years or less, you should consider them just like you would other expenditures for the project. And once you've turned the property, recouping this expense is the exact same as recouping the expense for all the kitchen and bath upgrades you performed.
In addition, even someone with poor credit will be able to qualify for a hard money mortgage. Rather than focusing entirely on the applicant's credit score or source of income, Hermitage hard money lenders, who may be a privately owned company or an individual, authorize a loan as a result of evaluating the property value, its marketability, its location, and the likelihood of recouping their money in case of foreclosure. Other factors that influence a person's eligibility for a hard money real estate loan include how much he is able to put into a down payment, his prior experience as a real estate investor, and selling price of similar, just recently sold properties in the neighborhood.
If you happen to have stumbled upon a really good fixer-upper with a high chance of returns, you have also stumbled upon a hard money lender in Hermitage who is willing to fund your fix and flip ventures. Fill out the contact form or get in touch with us via phone to discuss your property.
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