Hard Money Loans in Kulpmont
Suppose you've run into this truly good bargain on a fix and flip property located in a great location, and you happen to be either a skilled real estate investor or a first-timer who really wants to try his hand at flipping. Professional house flippers, like the young couple on Flip or Flop, HGTV's reality flipping series, are able to generate a profit of $40-$50k as an average on more than one occasion. No need to explain that their rehabbing experience, knowledge of hard money loans, expertise in their housing market, and auction skills have had a big role in their successes. Still, your rehab and remodeling skills aren't that bad either — besides, you have already located an ideal general contractor to tackle the job.
But capital can be a different issue entirely. For those who go after an ordinary loan from the bank, you will wind up waiting around somewhere around one to two months before the financing is authorized and the funds are ready. Thus if you happen to be wishing for a fast closing, you have to be aware that this will set you back by a few weeks, causing you to lose out on the home.
Moreover, if you have an unfavorable credit situation or do not receive a routine income, it may be more challenging to be eligible for a bank financing, considering the stricter loan guidelines banks have issued recently. So will a shortage of financing stop you from sticking with your ambitions? Under no circumstances, particularly while Kulpmont hard money loans enable you to achieve many amazing things in the real estate market.
A hard money home loan in Kulpmont promises what is possibly most important to real estate investors — a quick closing in as little as 14 days. Aside from that, loan amounts can be made up to 70% loan-to-value of the "as is" house's valuation, as determined by a licensed appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, seem to be costlier than bank financing. But the time frames of these loans tend to be comparatively shorter, making the interest rate less significant. The price tag on such short-term loans ought to be evaluated on par with any other cost that you might encounter in the course of the project. After you renovate and unload the home, recuperating this expense is no different than recuperating the cost of the home appliances you put in the place.
Besides, hard money mortgages are easy qualifying, even when you posses a weak credit score. The applicant's credit score isn't the lone determining factor for Kulpmont hard money lenders — they also look at the home, what is it valued at, where it is located, and its potential to earn back their financial commitment if things should not go as planned. Additional criteria that impact a person's acceptance for a hard money real estate loan include what amount of money he is in a position to put into a down payment, his prior experience as a real estate investor, and price range of comparable, recently sold residences in the vicinity.
So in case you have stumbled upon a wonderful fixer-upper with a high potential for returns, you've also found yourself a hard money lender in Kulpmont who's willing to provide financing for your flipping ventures. Fill out the form on this page or give us a call to talk about your property or properties.
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