Hard Money Loans in Kenmore
There is this phenomenal possibility for rehabbing and flipping this wonderful old home in a good area and it seems a lot like the deal you have been expecting for quite some time. Everyone knows that expert professional flippers, such as Tarek and Christina El Moussa who do HGTV's reality flipping series, Fix or Flop, can make an average profit of $40,000 to $50,000 in their rehab business. Naturally, you also understand that their great results can be attributed to the fact that they're professionals, are proficient in hard money loans, they know the marketplace really well and furthermore, they know how to work an auction to purchase their houses at a reasonable price. Nonetheless, your rehab and renovation knowledge isn't bad either — aside from that, you've already located a suitable contractor to start the job.
But where precisely do real estate investors get capital? A conventional lending institution, say for example a bank, takes no less than one to two months to authorize the mortgage and provide the capital. So if you're wishing for a fast closing, you have to recognize that this will set you back by a couple of weeks, causing you to miss out on the house.
Moreover, for those who have a less-than-perfect credit rating or do not have a routine income, it can be more challenging for you to qualify for a bank loan, considering the tighter loan guidelines banks have introduced recently. So does that leave you with no option, but to give up your aspiration to venture into home flipping? Certainly not, due to the fact you could always use the Kenmore, New York hard money loan approach to finance your rehab project.
A hard money home loan in Kenmore provides what's possibly most crucial to real estate investors — a fast closing in as little as 14 days. What's more, the LTV value can reach up to 70% of the property value, as estimated by a competent appraiser. At first glance, hard money real estate loans, with starting interest rates of 10%, seem to be more costly than bank financing. But usually, the lending rate is not as relevant for these loans, simply because they aren't long-term loans. When it comes to short-term loans of 1 or 2 years or even less, you should consider them the same as you might for any other expenditure for your project. And when you've flipped the home, recuperating this expense is comparable to recouping the expense for the bathroom updates you performed.
Besides, hard money mortgages are not hard to qualify for, even when you have got below-average credit. Rather than focusing solely on the borrower's credit score or source of income, Kenmore hard money lenders, who can be a privately owned company or an individual person, authorize a loan after evaluating the property value, ease of marketability, where it is located, and the odds of recuperating their money in case they have to foreclose the loan. Several other criteria that impact a borrower's acceptance for a hard money real estate loan can include the amount he is able to put into a down payment, his past experience being a real estate investor, and price of comparable, just recently sold homes in the vicinity.
So any time you run into an outstanding and profitable investment opportunity, relax knowing you will have a hard money lender in Kenmore, equipped to lend you the money you need. Complete the contact form on this page or get in touch with us via phone to discuss your project.
A loan specialist will be in touch shortly