Hard Money Loans in Jersey Shore
A fabulous buy on a fix and flip property located in a very good subdivision suddenly shows up — seems so good that it's hard to believe. Expert residential home flippers, such as the young married couple on Flip or Flop, HGTV's reality flipping program, are capable of earning a profit of forty to fifty grand for the majority of homes. Naturally, you also recognize that their results can be attributed to the fact that they're professionals, are proficient in hard money loans, they understand the market quite well and they also know how to work an auction for getting an appropriate deal. That said, you have likewise been developing your rehab and remodeling knowledge, have a very good general contractor ready to go and are positive that you're capable of doing an impressive job on this property.
But capital can be a different issue entirely. If you approach a standard lending institution, like a bank for a loan, it is likely going to take, at a minimum, 30-60 days for your approval to be completed and your money to be dispersed. Since the majority of home owners would rather have a fast closing, it may be best to start searching for additional financing alternatives.
As well as this, if you have a sub-optimal credit rating or don't have a routine income, it usually is more difficult to qualify for a bank loan, considering the more stringent loan guidelines banks have put in place lately. So must you admit defeat and abandon your aspiration to venture off into the real estate market? Certainly not, because you could always go the Jersey Shore hard money loan route to finance your rehab project.
A hard money home loan in Jersey Shore offers you what is deemed vital to most real estate transactions — a fast closing of just a few weeks and at times even less. Besides that, hard money lenders can do lending up to 70% LTV of the property or home value, as established by a qualified third-party evaluation. At first, hard money real estate loans, with starting interest rates of 10%, seem to be higher in price than bank financing. But once you understand these loans are not long-term home loans, the rate may be misleading. The price tag on such short-term loans should be looked at on par with every other financial outlay that you will have to meet pertaining to the project. Once you've sold the house and have made a successful profit, you'll be able to recover this expense from the home — much like recuperating the money spent on the brand-new kitchen appliances that you installed.
Besides, hard money mortgages are easy qualifying, regardless if you have a bad credit rating. Instead of focusing only on the person's credit score or source of income, Jersey Shore hard money lenders, who could be a private company or an individual person, say yes to a loan after examining the property value, its marketability, its location, and the probability of getting back their capital if they have to foreclose the loan. Adding to that, if the individual can demonstrate past experience in similar real estate endeavors, can place down money towards a down payment, and the price of similar houses in the vicinity works to his benefit, he has a really good likelihood of being approved to obtain a hard money real estate loan.
If you happen to have stumbled upon a really good fixer-upper with a significant prospect of returns, you've also stumbled upon a hard money lender in Jersey Shore that is happy to provide financing for your fix and flip project. Submit the form on this page or call us to talk about the property you have in mind.
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