Hard Money Loans in Hicksville
A remarkable deal on a fix and flip property in a nice area of the city shows up out of the blue — sounds too good to be true. Most folks know that expert professional flippers, like Tarek and Christina El Moussa from HGTV's reality home flipping program, Fix or Flop, can earn an average profit of $40,000 to $50,000 in their rehab business. Undoubtedly, you also understand that their great results can be attributed to the simple fact that they are experts, are well versed in hard money loans, they know the marketplace quite well and additionally, they know how to work a public auction to buy their homes at an appropriate deal. On the other hand, you're certain that your impressive rehab and renovation talents can help you do a quality job on the property — in addition, you've already lined up one of the premier general contractors in town to take on the project.
But financing is a different problem entirely. If you meet with a standard lender, much like a bank for funding, it's very likely going to take a minimum of four to eight weeks for your acceptance to be completed and your funds to be accessible. Considering that the sellers are looking for a fast closing, that does not appear to be a good option to you whatsoever.
Moreover, should you have a less-than-perfect credit score or don't have a regular source of income, it is usually more difficult for you to qualify for a bank loan, considering the more stringent loan requirements banks have introduced of late. So does that mean you are without an option, but to drop your dream of venturing into home flipping? By no means, considering that you could always go the Hicksville hard money loan route to fund your flipping project.
A hard money home loan in Hicksville can provide what is regarded as imperative to most real estate sales — a very fast closing of just a 2-3 weeks and sometimes even less. Aside from that, loans can be done for up to 70% loan-to-value of the "as is" valuation, as determined by a professional appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, appear to be higher priced than bank lending options. But the lengths of these loans are fairly short, making the interest rate much less significant. When it comes to short-term loans of one or two years or even less, you should think of them the same as you would for every other expenditure for your project. Right after you rehab and sell the house, recouping this expense is the same as recovering the cost of the stainless steel appliances you installed in the house.
Moreover, even someone with poor credit can still be eligible for a hard money mortgage. As an alternative for focusing entirely on the applicant's credit score or wages, Hicksville hard money lenders, who can be a privately owned company or an individual, approve a loan after examining the home value, its salability, where it is located, and the probability of getting back their capital in case they have to foreclose the loan. On top of this, if the applicant have proven experience in equivalent real estate ventures, can place down money towards the down payment, and the cost of equivalent houses in the neighborhood works to his benefit, he has a really good likelihood of being eligible for a hard money real estate loan.
So in case you have found a wonderful home to flip with a significant prospect of returns, you've also found yourself a hard money lender in Hicksville that's willing to provide funding for your fix and flip projects. Submit the form on this page or call us to discuss your property or properties.
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