Hard Money Loans in Kings Point
Suppose you've encountered this truly good deal on a fix and flip property in a terrific neighborhood, and you're either a skilled real estate investor or a newbie who hopes to try out flipping homes. Everyone knows that knowledgeable professional flippers, along the lines of Tarek and Christina El Moussa from HGTV's reality home flipping show, Fix or Flop, can make an average profit margin of forty to fifty thousand dollars on their home projects. Naturally, you also know that their results are attributed to the simple fact that they are experts, are knowledgeable in hard money loans, they understand the market quite well and they also know how to work a public auction for getting a reasonable price. Nonetheless, your rehab and renovation knowledge isn't bad either — besides, you have already located an ideal licensed contractor to tackle this home.
But financing is often a separate question altogether. When you get in touch with a standard lending institution, much like a bank for funding, it's very likely going to take, as a minimum, 30-60 days for the approval to be completed and the funds to be accessible. So if you will be expecting a fast closing, it is important you realize that this may cost you a couple weeks, making you lose out on the sale.
As well as this, for those who have a less-than-perfect credit situation or don't receive a routine income source, it may be tougher to obtain a bank loan, seeing the tighter loan requirements banks have issued lately. So will inadequate financing keep you from pursuing your dream? Certainly not, seeing as you also have the Kings Point, New York hard money loan option.
If you decide to get a hard money home loan in Kings Point, you have access to what is probably most vital to real estate negotiations across the country — a quick closing of about 14 days. Further, loan amounts can be made up to 70% loan-to-value of the "as is" valuation, as established by a qualified appraiser. On the surface, hard money real estate loans, with starting lending rates of 10%, appear to be higher in price than bank lending products. But once you appreciate that these loans are not long-term home loans, the rate of interest can be misleading. Short-term loans of a couple of months to a handful of years are best understood as cost of capital, the same as all other expenses in connection with a project. And once you've turned the property or home, recuperating this expense is identical to recouping the expense for the kitchen and bath upgrades you performed.
Aside from that, hard money mortgages are easy qualifying, even in the event you have got bad credit. Kings Point hard money lenders do not approve a loan solely according to the applicant's credit score — instead they will evaluate the property, its location and value, and the property's capacity to pay back the loan by itself. On top of this, if the borrower have proven experience in equivalent real estate ventures, can place down cash towards the down payment, and the value of equivalent homes in the vicinity works to his benefit, he will have a good likelihood of being eligible for a hard money real estate loan.
Searching for a hard money lender in Kings Point to cover expenses for your real estate project is not very challenging, so long as the opportunity that lies ahead of you is promising and possesses a strong potential for returns. Enter your info into the form or give us a call and let's talk about your property or properties.
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