Hard Money Loans in Penns Grove

Suppose that you've come across this excellent deal on a fix and flip property located in an ideal neighborhood, and you are either a skilled real estate investor or a newbie who really wants to try his hand at flipping. You've probably heard that professional home flippers, much like the husband and wife on HGTV's Flip or Flop, turn a remarkable average return of around forty to fifty thousand dollars. Undoubtedly, you also understand that their success can be credited to the simple fact that they are experts, are proficient in hard money loans, they understand the market quite well and in addition, they are good at working an auction to purchase their houses at a good deal. On the other hand, you are assured that your impressive rehab and renovation talents will help you do a great job on this house — in addition, you already have arranged to have one of the premier building contractors in town to take on this job.

But where can real estate investors find financing? A traditional lender, like for example a bank, takes a minimum of one to two months to authorize the mortgage and deliver the funds. Since the majority of home owners would rather have a fast closing, you may want to start looking for some other financing options.

As well as this, in case you have an unfavorable credit score or don't have a conventional income source, it may be more difficult to be eligible for a bank loan, considering the stricter loan requirements banks have issued of late. So must you admit defeat and forego your dream to venture off into the real estate market? Never, due to the fact you can always go the Penns Grove, New Jersey hard money loan route to fund your rehab project.

A hard money home loan in Penns Grove offers you what's deemed imperative to many real estate sales — a very fast closing of just a 2-3 weeks and sometimes even less. In addition, the LTV value can reach up to 70% of the place's valuation, as estimated by a competent appraiser. With the loan rates starting off at about 10%, hard money real estate loans may seem, initially, to be higher in price as compared with traditional bank loans. But once you consider these are not long-term loans, the rate tends to be misleading. The price tag on such short-term loans should be considered on par with any other expense that you would have to meet for the project. And when you've turned the property or home, recuperating this expense is the exact same as recovering the expense for the kitchen and bath upgrades you performed.

Besides, hard money mortgages are easy qualifying, whether or not you have got a low credit score. Rather than focusing only on the applicant's credit score or source of income, Penns Grove hard money lenders, who could be a privately owned company or an individual, authorize a loan after examining the property value, ease of marketability, its location, and the probability of getting back their capital should they have to foreclose the loan. The amount that an applicant can put upfront towards the property, how much experience he has in real estate investments, and price range of equivalent properties in the neighborhood are other factors that go into analyzing a borrower's suitability for a hard money real estate loan.

Finding a hard money lender in Penns Grove to cover expenses for your real estate project is not very hard, provided that the opportunity that lies before you is promising and has the right prospect for returns. Submit the form on this page or give us a call and let's talk about your project.

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Investment property loans only please, no primary residences at this time.