Hard Money Loans in Kittanning
An incredible deal on a fix and flip opportunity in a good neighborhood all of a sudden shows up — seems too good to be true. Many people know that knowledgeable professional flippers, such as Tarek and Christina El Moussa who do HGTV's reality home flipping show, Fix or Flop, are able to turn a typical profit of forty to fifty thousand dollars in their rehab business. No need to explain that their rehabbing experience, understanding of hard money loans, familiarity with the market, and auction talents have played an important role in their success. Having said that, you've also been developing your rehab and renovation skills, have got a general contractor ready for the project and are confident that you can do a bang up job on this house.
But capital can be a different problem altogether. When you go after an ordinary loan via a bank, you will wind up waiting around roughly 30-60 days up until the mortgage loan is authorized and your money is available. Thus if you happen to be looking for a fast closing, you have to understand or know that this may set you back by a couple of weeks, making you lose out on the opportunity.
With banks introducing harder loan criteria in the past few years, it has become harder for a self-employed person to obtain a home loan, especially when his credit score is not optimal. So do you have to admit defeat and abandon your dream to get into fix and flips? Definitely not, given that you always have the Kittanning hard money loan alternative.
When you obtain a hard money home loan in Kittanning, you're going to get what is perhaps most vital to real estate transactions throughout the country — a very fast closing of roughly 14 days. Plus, the LTV value can reach up to 70% of the home's valuation, as evaluated by a certified appraiser. On the surface, hard money real estate loans, with starting lending rates of 10%, appear to be higher in price than bank financing. But the time frames of these loans are quite shorter, which means the interest rate is far less important. The cost of such short-term loans should be looked at much like every other financial outlay that you will encounter in the course of the project. After you rehab and sell off the property, recovering this expense is just like recouping the cost of the home appliances you put in the place.
Apart from this, hard money mortgages are not difficult to qualify for, regardless if you have below-average credit. Instead of focusing exclusively on the person's credit score or wages, Kittanning hard money lenders, who could be a private company or an individual person, authorize a loan as a result of examining the property value, ease of marketability, where it is located, and the possibility of recouping their capital in case of foreclosure. Additional criteria that influence an applicant's acceptance for a hard money real estate loan can include how much he is able to put towards a down payment, his past experience being a real estate investor, and selling price of comparable, recently sold residences in the vicinity.
So in the event you run into a good and profitable flipping opportunity, feel comfortable knowing you'll have a hard money lender in Kittanning, prepared to loan you the capital you will need. Submit the contact form on this page or call us to talk about the property or properties you have in mind.
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