Hard Money Loans in Jefferson Hills
Suppose you've run into this truly good deal on a fix and flip property located in an ideal neighborhood, and you happen to be either a seasoned real estate investor or a first-timer who is looking to try his hand at flipping. Everybody knows that expert professional flippers, like Tarek and Christina El Moussa from HGTV's reality flipping program, Fix or Flop, can readily turn an average profit margin of forty to fifty thousand dollars on their home projects. Undoubtedly, you also realize that their great results can be credited to the simple fact that they're professionals, are well versed in hard money loans, they understand the market really well and furthermore, they know how to work an auction to buy their properties at an appropriate price. With that being said, you have recently been cultivating your rehab and remodeling knowledge, have a licensed contractor arranged and are confident that you can do a bang up job on this house.
But how do you find the necessary capital for flipping? When you opt for a regular bank loan, you will have to wait somewhere around 1 to 2 months before the financing is approved and your money is available. So if you will be expecting a fast closing, you need to realize that this could set you back by weeks, causing you to miss out on the house.
What's more, in case you have an unfavorable credit situation or don't have a regular source of income, it can be more challenging for you to be eligible for a bank financing, seeing the stricter loan criteria banks have put in place recently. So must you admit defeat and forego your desire to venture into real estate? Certainly not, on the grounds that you could always use the Jefferson Hills hard money loan approach to pay for your home flipping project.
If you obtain a hard money home loan in Jefferson Hills, you have access to what's probably most vital to real estate transactions across the country — a very fast closing of around fourteen days. Plus, the LTV value can range up to 70% of the property's valuation, as estimated by a certified appraiser. With lending rates starting at about 10%, hard money real estate loans may look, initially, to be more pricey compared to traditional bank loans. But the term lengths for these loans tend to be quite shorter, making the interest rate much less significant. The price tag on such short-term loans should be viewed much like any other expense that you might encounter during the project. And when you have flipped the property or home, recouping this expense is the exact same as recuperating the expense for the kitchen and bath updates you did.
Additionally, it isn't difficult to qualify for a hard money mortgage, regardless if your credit score is not that extraordinary. Jefferson Hills hard money lenders do not authorize a loan solely on the basis of the applicant's credit score — instead they will look at the property or home, where it is located and what it is worth, and the home's capacity to pay back the loan independent of the applicant. Adding to this, if the borrower can demonstrate prior experience in comparable real estate projects, can place down cash towards a down payment, and the price of similar houses in the area works in his favor, he will have an excellent chance of qualifying to get a hard money real estate loan.
If you happen to have stumbled upon a really great home to flip with a significant probability of returns, you've also found yourself a hard money lender in Jefferson Hills who's happy to provide financing for your flipping venture. Complete the contact form on this page or give us a call to discuss the property you have in mind.
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