Hard Money Loans in Kutztown
Suppose that you've run across this really great bargain for a fix and flip property located in an ideal neighborhood, and you happen to be either an experienced real estate investor or a first-timer who is looking to try out flipping houses. You've probably heard that competent home flippers, much like the married couple on HGTV's Flip or Flop, have an impressive average return near forty to fifty thousand dollars. Of course, you also recognize that their success are attributed to the simple fact that they are professionals, are well versed in hard money loans, they know the marketplace quite well and they also know how to work an auction to purchase their houses at a good deal. Having said that, you have also been cultivating your rehab and renovation skills, have a very good building contractor ready for the project and are certain that you will be able to do a stellar job for this home.
But funding is usually a separate question altogether. A typical lender, for instance a bank, takes no less than one to two months to authorize the financing and deliver the monies. Because most sellers wish to have a fast closing, you might have to begin looking for other funding alternatives.
To add to it, banks have already been tightening up their lending standards in recent times, which makes it tough for a person to obtain a conventional home loan if their credit situation is not perfect or he does not possess a regular salaried occupation. So does that mean you have no option, but to give up your ambition to venture into the fix and flip business? Certainly not, because you always have the Kutztown hard money loan option.
If you should put in an application for a hard money home loan in Kutztown, you'll get what's perhaps most important to real estate purchases across the country — a quick closing of roughly a couple weeks. Furthermore, hard money lenders are able to do loans up to 70% LTV of the home value, as assessed by a licensed third-party appraiser. With rates starting out near 10%, hard money real estate loans may appear, at first, to be more expensive in comparison with traditional bank lending products. But the lengths of these loans tend to be quite shorter, which makes the interest rate less significant. Short-term loans of a couple of months to a handful of years are best approached in terms of cost of capital, the same as all other expenditures associated with a project. After you renovate and resell the property, recovering this expense is the same as recovering the money you spent for new kitchen appliances you placed into the property.
In addition, even individuals with bad credit can easily be eligible for a hard money mortgage. Instead of focusing solely on the borrower's credit score or net income, Kutztown hard money lenders, who may be a privately owned company or an individual person, approve a loan as a result of examining the property value, its marketability, its location, and the likelihood of getting back their money in case of foreclosure. Other variables that affect an individual's approval for a hard money real estate loan include the amount he is able to put towards a down payment, his former experience being a real estate investor, and price of similar, recently sold residences in the vicinity.
If you happen to have found an excellent fixer-upper with a huge prospect of returns, you have also discovered a hard money lender in Kutztown that is happy to fund your flipping projects. Complete the contact form or give us a call to talk about the property or properties you have in mind.
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