Hard Money Loans in Ithaca
Suppose you've stumbled upon this truly good bargain on a fix and flip property located in a terrific location, and you happen to be either a seasoned real estate investor or a first-timer who hopes to try out flipping houses. Most folks know that knowledgeable professional flippers, like Tarek and Christina El Moussa from HGTV's reality home flipping program, Fix or Flop, are able to turn an average profit of forty to fifty thousand dollars in their rehab business. And yes, they are aided in a big way via their professional knowledge, auction skills and familiarity with hard money loans. Still, your rehab and renovation skills aren't that bad either — in any case, you've already located a good licensed contractor to handle the project.
But funding is usually a different issue altogether. When you go after a regular loan from the bank, you will have to wait roughly 30-60 days until eventually the mortgage loan is approved and the money is ready. Thus if you are wishing for a fast closing, you have to understand or know that this will cost you weeks, making you miss out on the sale.
As well as this, if you have a sub-optimal credit situation or do not have a routine source of income, it usually is more challenging to qualify for a bank loan, with the tougher loan criteria banks have put in place as of late. So do you have to stop trying and forego your aspiration to embark into real estate? Under no circumstances, especially when Ithaca hard money loans can help you accomplish great things in the real estate world.
A hard money home loan in Ithaca can provide what's regarded as imperative to most real estate transactions — a quick closing of only a few weeks and at times less. In addition, the LTV value can range up to 70% of the property's valuation, as evaluated by a credentialed appraiser. With the interest rates starting out around 10%, hard money real estate loans might seem, at first, to be more costly when compared with traditional bank lending products. But in reality, the interest rate isn't as relevant for these loans, given that they aren't long-term loans. When it comes to short-term loans of a handful of years or even less, you should think of them just like you would other expenditures for the project. Once you have turned the home and have made a successful return, you'll be able to reclaim this expense from the property — just like recovering the money necessary for the brand-new home appliances that you've put in.
Besides, hard money mortgages are easy qualifying, regardless if you posses a weak credit score. The borrower's credit score is not the exclusive determining factor for Ithaca hard money lenders — in addition, they look at the home, what is it valued at, its location, and its ability to bring back their financial commitment if things should not work out as intended. Several other criteria that have an impact on a customer's eligibility for a hard money real estate loan include how much he is in a position to put into a down payment, his prior experience being a real estate investor, and price range of similar, just recently sold properties in the area.
So should you run into an outstanding and lucrative flipping opportunity, be assured you'll have a hard money lender in Ithaca, prepared to loan you the money you will need. Complete the form or get in touch with us via phone to talk about your property.
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