Hard Money Loans in Irvington
Imagine you've encountered this really great deal on a fix and flip property located in a great location, and you're either an experienced real estate investor or a newbie who wants to try his hand at flipping. Everyone knows that skilled professional flippers, along the lines of Tarek and Christina El Moussa from HGTV's reality home flipping program, Fix or Flop, are able to make an average profit of forty to fifty thousand dollars in their rehab business. Of course, you also know that their results can be credited to the simple fact that they're professionals, are proficient in hard money loans, they know market trends quite well and furthermore, they are good at working an auction to buy their homes at a reasonable price. However, you're certain that your impressive rehab and remodeling knowledge will enable you to do a quality job for this home — additionally, you already have arranged to have one of the finest building contractors in town to take care of this job.
But where do you find the needed financing for flipping? In the event you get in touch with a regular lending institution, like a bank for financing, it's in all likelihood going to take, at a minimum, 30-60 days for your acceptance to come through and your money to be distributed. With the sellers seeking a fast closing, that does not seem like a great idea to you at all.
To add to it, banks have been tightening up their lending criteria as of late, making it difficult for a person to get a regular home loan if their credit circumstances are not perfect or he does not possess a consistent salaried occupation. So does that mean you have no option, but to give up your dream to venture into home renovating? Under no circumstances, especially while Irvington, New York hard money loans will assist you to achieve many amazing things in the real estate market.
If you should apply for a hard money home loan in Irvington, you have access to what is perhaps most vital to real estate offers across the country — a very fast closing of around 14 days. Further, loans are made up to 70% loan-to-value of the "as is" house's valuation, as determined by a qualified appraiser. Some people believe hard money real estate loans to be higher in price than ordinary financing, because the lending rates of such loans ordinarily start off at 10%. But once you understand these loans are not long-term home loans, the rate may be misleading. Short-term loans of several months to a handful of years are best approached in terms of cost of capital, much like all other expenditures associated with a project. And once you've finally sold the property or home, recouping this expense is the exact same as recouping the expense for the bathroom improvements you did.
Also, it's simple to qualify for a hard money mortgage, even if your credit score is not that great. The customer's credit score is not the primary determining factor for Irvington hard money lenders — additionally, they look at the house, its market value, its location, and its ability to earn back their investment if everything does not go as intended. How much an applicant can put down in advance towards the house, his past real estate experience, and selling price of equivalent properties in the same area are various other factors that go into determining a borrower's qualification for a hard money real estate loan.
So in the event you run into an outstanding and lucrative flipping opportunity, be assured you'll have a hard money lender in Irvington, equipped to loan you the funds you'll need. Submit the form on this page or call us to talk about your property.
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