Hard Money Loans in Highland Park
A fantastic buy on a fix and flip property located in a good subdivision all of a sudden shows up — sounds too good to be true. Many people know that skilled professional flippers, such as Tarek and Christina El Moussa from HGTV's reality flipping program, Fix or Flop, can readily make an average profit margin of $40,000 to $50,000 in their rehab business. No need to explain that their past experiences rehabbing, knowledge of hard money loans, familiarity with the market, and auction talents have had an important role in their results. Still, your rehab and remodeling skills aren't that bad either — in any case, you've already identified a good building contractor to handle the job.
But where do you obtain the needed funding for flipping? When you get in touch with a customary lending institution, like a bank for financing, it's very likely going to take, at the very least, 30-60 days for the acceptance to come through and your money to be sent out. Because most home owners would prefer a fast closing, you might want to start looking for additional funding alternatives.
As well as this, should you have a less-than-perfect credit rating or do not have a conventional income source, it is usually more challenging for you to qualify for bank financing, considering the stricter loan requirements banks have issued of late. So will a shortage of funding stop you from pursuing your aspirations? Never, because you could always go the Highland Park, New Jersey hard money loan route to finance your home flipping project.
If you decide to get a hard money home loan in Highland Park, you'll get what's perhaps most vital to real estate purchases across the country — a fast closing of roughly two weeks. And additionally, financing is made up to 70% loan-to-value of the "as is" house's valuation, as determined by a licensed appraiser. Some people believe hard money real estate loans to be more expensive than customary financing, considering lending rates for these loans often start out at 10%. But the term lengths for these loans tend to be quite short, which means the interest rate is less important. Short-term loans of several months to a few years are best understood as cost of capital, much like all other expenses involved with a project. When you have sold the property or home and have made a positive profit, you're able to recover this expense from the home — similar to recovering the money spent on the brand-new appliances for the kitchen that you installed.
Aside from that, hard money mortgages are easy qualifying, even when you have got below-average credit. Instead of focusing strictly on the borrower's credit score or wages, Highland Park hard money lenders, who could be a privately owned company or an individual, authorize a loan after assessing the property value, how easy it will be to market, its location, and the possibility of getting back their money in case they have to foreclose the loan. Other factors that influence an applicant's acceptance for a hard money real estate loan can include what amount of money he is in a position to put into a down payment, his prior experience being a real estate investor, and price range of similar, recently sold homes in the area.
So any time you run into a very good and profitable investment opportunity, rest assured you will have a hard money lender in Highland Park, able to loan you the funds you will need. Complete the contact form on this page or call us to discuss your property.
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