A fabulous bargain on a fix and flip property located in a good area of the city suddenly turns up — sounds so good that it is difficult to believe. Expert house flippers, similar to the young married couple on Flip or Flop, HGTV's reality flipping program, are capable of bringing in a gain of $40-$50k on the majority of projects. No need to explain that their past experiences rehabbing, knowledge of hard money loans, familiarity with the housing market, and auction talents have been large factors to their successes. Nevertheless, you are convinced that your superb rehab and remodeling abilities will assist you to do a great job for this house — what's more, you have already lined up one of the best building contractors in town to take on the job.
But financing is a different issue altogether. When you approach a customary lender, much like a bank for funding, it in all likelihood will take, at the very least, 4-8 weeks for the acceptance to be completed and your funds to be accessible. With all the home owners wanting a fast closing, that does not seem like a great idea to you at all.
With banks introducing harder loan standards in the past several years, it has become more difficult for a self-employed individual to obtain a home loan, particularly if his credit score is not flawless. So should you give up and forego your desire to venture off into the real estate market? By no means, especially when New Jersey hard money loans enable you to achieve many amazing things in the real estate world.
A hard money home loan in New Jersey offers what is viewed as crucial to most real estate deals — a very fast closing of only a couple of weeks and at many times less. Also, hard money lenders are capable of doing lending up to 70% LTV of the property or home's valuation, as calculated by a professional third-party appraiser. A number of people regard hard money real estate loans to be more pricey than customary financing, because the lending rates of such loans generally start out at 10%. But if you appreciate that these loans are not long-term loans, the rate of interest may be misleading. When it comes to short-term loans of 1 or 2 years or less, you should consider them identical to every other expense for your project. After you fix up and unload the property, recouping this expense is no different than recovering the one for new kitchen appliances you placed into the property.
Aside from that, hard money mortgages are not hard to qualify for, regardless if you posses a weak credit score. New Jersey hard money lenders do not take on a loan exclusively judging by the borrower's credit score — instead they also examine the property or home, its location and value, and the home's capacity to pay back the loan without the assistance of the person. Adding to that, if the person can demonstrate prior experience in comparable real estate ventures, can place down cash for a down payment, and the value of similar properties in the vicinity works to his benefit, he stands a very good shot of qualifying for a hard money real estate loan.
Searching for a hard money lender in New Jersey to fund your real estate project is not hard, assuming that the opportunity that lies before you is promising and possesses a good prospect for returns. Complete the contact form or call us to talk about your project.