Hard Money Loans in Ithaca
Imagine you've stumbled upon this really great bargain on a fix and flip property located in a terrific location, and you are either a seasoned real estate investor or a first-timer who hopes to try his hand at flipping. Many people know that capable professional flippers, like Tarek and Christina El Moussa who star in HGTV's reality home flipping show, Fix or Flop, are able to make a typical profit of $40,000 to $50,000 on their home projects. No need to explain that their past experiences rehabbing, knowledge of hard money loans, expertise in their market, and auction skills have been major factors to their results. Having said that, you've also been brushing up your rehab and remodeling knowledge, have a very good building contractor lined up and are certain that you can do a great job for this property.
But how do you get the necessary financing for home flipping? A standard lending institution, for instance a bank, takes at a minimum 1 to 2 months to approve the financing and release the funds. With all the sellers seeking a fast closing, that does not appear like a good option to you whatsoever.
With banks establishing harder loan criteria in the past several years, it is now more challenging for a self-employed individual to get a home loan, especially if his credit rating is not optimal. So does that leave you with no option, but to drop your ambition of venturing into rehabbing? Certainly not, seeing as you always have the Ithaca hard money loan alternative.
Should you get a hard money home loan in Ithaca, you will get what is probably most vital to real estate offers throughout the country — a quick closing of roughly 2 weeks. Further, loan amounts can be done for up to 70% loan-to-value of the "as is" home's valuation, as established by a qualified appraiser. Some people consider hard money real estate loans to be more expensive than regular loans, since the lending rates for these loans generally start at 10%. But when you consider these are not long-term mortgage loans, the rate tends to be misleading. Short-term loans of a couple of months to a handful of years are best understood as cost of capital, much like any other expenditure related to a project. When you have resold the property or home and have made a positive return, you can recoup this expense from the home — just like recouping the money spent on the brand-new home appliances that you have installed.
What's more, it's easy to qualify for a hard money mortgage, even if your credit situation is not that extraordinary. As an alternative for focusing entirely on the applicant's credit score or net income, Ithaca hard money lenders, who could be a private company or an individual person, authorize a loan as a result of evaluating the home value, ease of marketability, its location, and the odds of recouping their capital if they have to foreclose the loan. Adding to that, if the borrower have proven experience in similar real estate projects, can put down cash for the down payment, and the cost of similar homes in the vicinity works to his benefit, he will have an excellent likelihood of being eligible for a hard money real estate loan.
Locating a hard money lender in Ithaca to fund your fix and flip endeavor is not difficult, so long as the opportunity in front of you is promising and has the right potential for returns. Enter your info into the contact form or call us to talk about the property or properties you have in mind.
A loan specialist will be in touch shortly