Hard Money Loans in Huntingdon
An outstanding deal on a fix and flip property located in a good area of the city shows up out of the blue — sounds too good to be true. You may have heard that professional property flippers, such as the husband and wife on HGTV's Flip or Flop, enjoy an impressive average return near $40,000 – $50,000. Without question, their rehabbing experience, understanding of hard money loans, expertise in their market, and auction skills have been large factors to their success. That said, you have also been cultivating your rehab and remodeling knowledge, have a general contractor ready to go and are certain that you will be able to do an impressive job for this house.
But how exactly do real estate investors obtain funding? Should you meet with a standard lender, much like a bank for funding, it very likely will take no less than 4-8 weeks for the acceptance to come through and the funds to be dispersed. Since most sellers would rather have a fast closing, it may be best to start looking for other funding alternatives.
As well as this, if you have a sub-optimal credit score or do not receive a consistent source of income, it is usually tougher to qualify for a bank loan, with the tougher loan requirements banks have issued in recent times. So does this leave you with no other option, but to give up your dream of venturing into flipping? Absolutely not, given that you always have the Huntingdon hard money loan alternative.
A hard money home loan in Huntingdon provides you with what's probably most essential to real estate investors — a fast closing time of as few as two weeks. Additionally, loan amounts are made up to 70% loan-to-value of the "as is" house's valuation, as established by a professional appraiser. At first, hard money real estate loans, with starting lending rates of 10%, could be seen as higher in price than bank lending products. But the time frames of these loans tend to be much shorter, which makes the interest rate less important. When it comes to short-term loans of several years or less, you should look at them similar to any other expenditure for the project. Right after you rehab and sell off the house, recovering this expense is the same as recovering the cost of the home appliances you placed into the property.
Furthermore, even someone with low credit can easily be eligible for a hard money mortgage. The customer's credit score is not the exclusive determining factor for Huntingdon hard money lenders — they also consider the piece of real estate, how much it is worth, where it is located, and its capability to earn back their investment if things should not work out as intended. How much an individual can put down beforehand towards the home, how much experience he has in real estate investing, and price range of equivalent homes in the vicinity are additional factors that go into analyzing a person's suitability for a hard money real estate loan.
Locating a hard money lender in Huntingdon to help with expenses for your fix and flip endeavor is not hard, assuming that the opportunity in front of you is promising and boasts the right potential for returns. Fill out the form on this page or get in touch with us via phone to discuss the property you have in mind.
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