Hard Money Loans in Jefferson
Suppose that you've come across this truly good bargain on a fix and flip property in a terrific neighborhood, and you're either an experienced real estate investor or a newbie who really wants to try out flipping homes. You may have heard that veteran house flippers, similar to the couple on HGTV's Flip or Flop, have a remarkable average profit margin of around $40,000 – $50,000. And without a doubt, they are aided in a major way due to their professional experience, auction skills and understanding of hard money loans. On the other hand, you are assured that your impressive rehab and remodeling knowledge will enable you to do a great job on this property — furthermore, you've already lined up one of the best building contractors in town to handle the project.
But where can you find the necessary funding for flipping? For those who approach a standard lender, like a bank for a loan, it's more than likely going to take no less than thirty to sixty days for your approval to come through and the money to be dispersed. Since most sellers give preference to a fast closing, you might need to begin searching for some other funding options.
With banks introducing tougher loan standards in the past several years, it's become much harder for a self-employed person to obtain a home loan, especially if his credit circumstances are not optimal. So does that mean you have no option, but to drop your dream to venture into home renovating? Certainly not, seeing as you always have the Jefferson hard money loan option.
A hard money home loan in Jefferson promises what's perhaps most crucial to real estate investors — a quick closing time period of as few as fourteen days. Furthermore, hard money lenders will often consent to lending up to 70% LTV of the home value, as estimated by a professional third-party evaluator. With the interest rates starting off around 10%, hard money real estate loans may look, initially, to be higher in price when compared with traditional bank financing. But the term lengths for these loans tend to be much shorter, making the rate much less important. Short-term loans of several months to a handful of years are best looked at as cost of capital, similar to all other costs in connection with a project. After you remodel and sell off the house, recuperating this expense is the same as recovering the money you spent for stainless steel appliances you installed in the home.
Furthermore, even a person with poor credit can still qualify for a hard money mortgage. Jefferson hard money lenders don't take on a loan exclusively on the basis of the customer's credit score — rather they will analyze the home, where it is located and what it is worth, and the property's capacity to pay back the financing by itself. The total amount that an applicant can put upfront for the property or home, his past real estate experience, and price range of comparable properties in the neighborhood are various other details that go into establishing an applicant's eligibility for a hard money real estate loan.
So if you have found a really good home to flip with a huge potential for returns, you have also stumbled upon a hard money lender in Jefferson who's ready to provide financing for your flipping ventures. Complete the form on this page or get in touch with us via phone and let's talk about your project.
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