Hard Money Loans in Jenkintown
Suppose you've run across this really great bargain for a fix and flip property located in a terrific neighborhood, and you happen to be either a skilled real estate investor or a newbie who really wants to try his hand at flipping. You may have heard that veteran home flippers, such as the married couple on HGTV's Flip or Flop, turn an impressive average profit margin of around $40,000 – $50,000. Naturally, you also know that their success are credited to the fact that they're industry experts, are knowledgeable in hard money loans, they understand market trends quite well and furthermore, they know how to work a public auction for getting a reasonable price. However, you are certain that your first class rehab and remodeling knowledge will assist you to do a superb job on this house — additionally, you already have arranged to have one of the most sought after building contractors in town to take care of the job.
But money is often a different problem entirely. A typical lender, say for example a bank, takes at least one to two months to authorize the financing and release the capital. Since most home owners would rather have a fast closing, it may be advisable to start looking for additional funding alternatives.
With banks bringing in more challenging loan guidelines in the past few years, it is now tougher for a self-employed individual to obtain a mortgage loan, especially if his credit rating is not flawless. So does that mean you have no option, but to drop your aspiration of getting into rehabbing? By no means, on the grounds that you could always use the Jenkintown hard money loan approach to fund your flipping project.
Should you obtain a hard money home loan in Jenkintown, you're going to get what's perhaps most important to real estate negotiations throughout the country — a very fast closing of about a couple weeks. Further, financing can be made up to 70% loan-to-value of the "as is" house value, as calculated by a licensed appraiser. A number of people believe hard money real estate loans to be higher in price than standard financing, since the interest rates for such loans usually start out at 10%. But usually, the rate of interest is not as useful a measure for these loans, since they will never be long-term financing. As it pertains to short-term loans of one or two years or even less, you should think of them similar to any sort of other expense for the project. And when you have turned the house, recuperating this expense is identical to recouping the expense for all the bathroom upgrades you did.
Furthermore, even someone with weak credit can still qualify for a hard money mortgage. Instead of focusing exclusively on the borrower's credit score or net income, Jenkintown hard money lenders, who may be a private company or an individual, authorize a loan after evaluating the home value, its salability, where it is located, and the likelihood of getting back their money in case of foreclosure. On top of this, if the borrower can demonstrate past experience in similar real estate projects, can place down money towards the down payment, and the price of equivalent homes in the area works to his benefit, he will have a good chance of being eligible to get a hard money real estate loan.
So in the event you run into a very good and profitable flipping opportunity, feel comfortable knowing you will have a hard money lender in Jenkintown, ready to loan you the cash you will need. Submit the form or give us a call to talk about your property or properties.
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