Hard Money Loans in Kennett Square
An incredible buy on a fix and flip property located in a very good area of the city shows up out of the blue — seems too good to be true. You've heard that veteran home flippers, like the married couple on HGTV's Flip or Flop, enjoy a remarkable average profit close to forty to fifty thousand dollars. No need to explain that their past experiences rehabbing, knowledge of hard money loans, familiarity with the market, and auction talents have been large factors to their successes. Nonetheless, your rehab and remodeling knowledge isn't that bad either — besides, you have already located a good licensed contractor to handle this home.
But where do you get the needed capital for home flipping? A conventional lender, like for example a bank, takes at the very least 1-2 months to consent to the loan and release the funds. Given that sellers favor a fast closing, it may be advisable to start looking for some other financing alternatives.
On top of this, banks have been tightening up their lending criteria as of late, making it hard for a person to get a traditional home loan if their credit situation is not perfect or he does not have a regular salaried job. So will a shortage of funding keep you from sticking with your dream? Under no circumstances, especially when Kennett Square hard money loans enable you to accomplish great things in real estate.
A hard money home loan in Kennett Square offers what's considered crucial to many real estate transactions — a quick closing of just a couple of weeks and more often than not less. Further, loans are made up to 70% loan-to-value of the "as is" home value, as calculated by a qualified appraiser. A number of people consider hard money real estate loans to be higher in price than ordinary loans, since the lending rates for such loans typically start out at 10%. But in reality, the interest rate isn't as pertinent for these loans, since they are not long-term loans. The price of such short-term loans should be looked at on par with any other expense that you would have to meet for the project. After you fix up and sell off the property, recovering this expense is just like recovering the cost of the home appliances you placed into the house.
Furthermore, even someone with poor credit will be able to qualify for a hard money mortgage. Instead of focusing solely on the borrower's credit score or source of income, Kennett Square hard money lenders, who may be a private company or an individual, approve a loan as a result of evaluating the home value, ease of marketability, its location, and the probability of recouping their money should they have to foreclose the loan. Adding to this, if the borrower have proven experience in equivalent real estate endeavors, can put down money towards a down payment, and the value of comparable homes in the vicinity works to his benefit, he will have an excellent chance of being approved to obtain a hard money real estate loan.
Locating a hard money lender in Kennett Square to fund your fix and flip endeavor is not very hard, so long as the opportunity before you is promising and boasts a good prospect for returns. Fill out the contact form on this page or give us a call and let's discuss your project.
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