Hard Money Loans in Keyport
An incredible buy on a fix and flip opportunity located in a very good neighborhood all of a sudden shows up — seems so good that it is hard to believe. Many people know that knowledgeable professional flippers, along the lines of Tarek and Christina El Moussa who star in HGTV's reality home flipping program, Fix or Flop, can make an average profit of forty to fifty thousand dollars on their home projects. And without a doubt, they are helped in a big way via their professional experience, auction skills and knowledge of hard money loans. Nonetheless, your rehab and remodeling skills aren't that bad either — besides, you have already located the right general contractor to tackle this job.
But how can you get the needed financing for home flipping? A conventional lending institution, like for example a bank, takes at least one to two months to approve the mortgage and release the cash. Given that home owners favor a fast closing, you might need to start looking for other financing alternatives.
What's more, in case you have a sub-optimal credit rating or do not have a regular income, it usually is tougher for you to obtain a bank loan, with the tougher loan guidelines banks have put in place as of late. So will a shortage of funds stop you from following your aspirations? Certainly not, because you could always go the Keyport, New Jersey hard money loan route to pay for your rehab project.
A hard money home loan in Keyport provides you with what's possibly most desired by real estate investors — a fast closing in as little as 2 weeks. What's more, the LTV value can go up to 70% of the home's valuation, as estimated by a certified appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, appear to be more expensive than bank lending options. But the term lengths for these loans are fairly short, making the interest rate much less significant. Short-term loans of a couple months to a few years are best looked at as cost of capital, similar to any other expenditure associated with a project. Once you've resold the property or home and have made a successful financial gain, you'll be able to recoup this expense from the house — the same as recovering the cost of brand-new appliances for the kitchen that you've put in.
Aside from that, hard money mortgages are not difficult to qualify for, even if you posses a bad credit score. The customer's credit score isn't the lone deciding factor for Keyport hard money lenders — additionally, they examine the property, what is it valued at, its location, and its ability to return their investment if things do not work out as planned. Additional factors that affect a customer's eligibility for a hard money real estate loan can include what amount of money he is able to put towards a down payment, his previous experience as a real estate investor, and price of comparable, fairly recently sold homes in the area.
So in the event you run into a very good and profitable investment opportunity, feel comfortable knowing you'll have a hard money lender in Keyport, willing to lend you the capital that you need. Fill out the form on this page or give us a call and let's discuss your property.
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