Hard Money Loans in Hollidaysburg
Suppose that you've come across this really great deal for a fix and flip property located in an ideal location, and you happen to be either a seasoned real estate investor or a newbie who hopes to try his hand at flipping. Expert house flippers, similar to the young married couple on Flip or Flop, HGTV's reality flipping program, are able to bring in a gain of forty to fifty grand as an average on more than one occasion. And yes, they are helped in a big way as a result of their professional knowledge, auction expertise and knowledge of hard money loans. That said, you have recently been brushing up your rehab and remodeling knowledge, have got a licensed contractor ready to go and are certain that you're capable of doing a bang up job for this property.
But capital can be a different issue altogether. If you opt for a regular bank loan, you will end up waiting around somewhere around 4-8 weeks up until the time the mortgage loan is approved and your money is available. Thus if you happen to be hoping for a fast closing, it's important to understand that this will cost you a couple of weeks, causing you to lose out on the house.
To add to it, banks have already been tightening up their lending requirements in recent years, rendering it more hard for someone to receive a regular loan if their credit score is not flawless or he does not have a consistent salaried profession. So will inadequate funds prevent you from pursuing your dream? By no means, particularly while Hollidaysburg hard money loans enable you to accomplish great things in real estate.
A hard money home loan in Hollidaysburg offers what's regarded as essential to most real estate transactions — a very fast closing of just a couple of weeks and at many times less. Furthermore, hard money lenders can approve loans up to 70% LTV of the property or home value, as identified by a licensed third-party evaluation. On the surface, hard money real estate loans, with starting interest rates of 10%, could be seen as more pricey than bank financing. But in reality, the rate of interest isn't as useful a measure for these loans, since they will never be long-term financing. Short-term loans of a couple of months to a few years are best looked at as cost of capital, similar to every other expense involved with a project. After you remodel and sell off the home, recovering this expense is the same as recouping the one for stainless steel appliances you placed into the home.
Besides, hard money mortgages are not hard to qualify for, whether or not you have got a bad credit score. Instead of focusing entirely on the person's credit score or wages, Hollidaysburg hard money lenders, who can be a privately owned company or an individual, approve a loan as a result of examining the home value, ease of marketability, where it is located, and the odds of recovering their capital in the event of foreclosure. Adding to this, if the applicant can demonstrate past experience in equivalent real estate projects, can put down cash towards a down payment, and the cost of similar homes in the vicinity works to his benefit, he has got a very good likelihood of being approved to obtain a hard money real estate loan.
So if you have stumbled upon an excellent fixer-upper with a significant prospect of returns, you have also stumbled upon a hard money lender in Hollidaysburg that's prepared to provide financing for your flipping project. Fill out the contact form or give us a call to talk about the property or properties you have in mind.
A loan specialist will be in touch shortly